Kapoor may Claim .₹ 700 crore from Micromax for ‘Wrongful Dismissal’
New Delhi: Having failed to reach a settlement over his firing by phone maker Micromax last year, former chairman Sanjay Kapoor may file a claim of .₹ 600-700 crore against the company for wrongful dismissal, said several people aware of the matter. This will likely be submitted to a threemember tribunal headed by former Supreme Court judge BP Singh as he seeks to press his claim to stock options in India’s No. 2 handset maker after Samsung. Micromax confirmed the panel had been formed after Kapoor invoked the arbitration clause in the Key Managerial Personnel Agreement under which disputes are referred to a three-member tribunal. Its first hearing will be on May 10. The company declined to elaborate on future proceedings in the case.
After his acrimonious exit, Kapoor and the company’s promoters had been negotiating a severance package since January. “Kapoor made an offer which was unacceptable to Micromax,” said one those cited above, without elaborating. “Hence, Kapoor has invoked the clause of three-man arbitration.”
As per his employment contract, Kapoor is said to be entitled to 3.5% of the company’s value under an employee stock option plan and a1.5% bonus. Micromax is not listed. Micromax cofounder Rahul Sharma had earlier told ET that the company would clock a revenue of around $2 billion (.`13,600 crore) in the year ended March 31.
Former Airtel chief executive officer Kapoor was hired in June 2014, along with other senior executives, to professionalise the management. However, differing working styles led to a breakdown in the relationship between him and the promoters, who have regained full operational control. The company had alleged inflated expense claims as reason for the dismissal, an accusation Kapoor vigorously denied.
Gulveen Aulakh & Chaitali Chakravarty Sanjay Kapoor