Kapoor may Claim .₹ 700 crore from Mi­cro­max for ‘Wrong­ful Dis­missal’

The Economic Times - - Companies -

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

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.