Sanjay Kapoor, Ex Chairman Micromax and Micromax India , failed to reach an agreement as advised by the court, to settle the matter outside the court.
Sanjay Kapoor, left Micromax after having tough time with Micromax Team over the Route to Market, for supplying Smartphones in Indian Market. As per the Terms and Conditions of Employment, Sanjay Kapoor was entitled for 3.5 % under Employee Stock option ( In terms of Value of Company ) , and in addition, 1.5 % Bonus, which comes out to be 5 % overall.
As declared by Rahul Sharma, Micromax Co-founder, Company will have revenue of 2 Billion Dollars, which comes out to be 13,400 Crores for the year end March 31. That comes out to be a big big amount – In tune of 650 Crores ( @ 3.5 + 1,5 % of Revenue ).
So where exactly the differences came up : Sanjay kapoor wanted to adopt a new route to market, while Company Promoters always wanted to stick to Traditional Route / Channel. Though, Micromax claimed that issues were related to inflated expense claims by Sanjay Kapoor, which Kapoor denied categorically. Not only Sanjay left the company, but CEO Vineet Taneja was also shown the Exit door, which was quiet obvious.
Micromax has already confirmed , that the panel has been formed after Sanjay Kapoor invoked the arbitration clause in the Key Managerial Personnel Agreement under which disputes are referred to a three-member tribunal. The first hearing will be on May 10th.
Summarizing : In September 2015, Kapoor moved the Delhi High Court against Micromax for not paying him the value of shares he said were due to him. He challenged the ouster and moved the court to appoint a sole arbitrator to decide the dispute between him and Micromax. The Delhi High Court had earlier this year asked both parties to resolve the dispute amicably and appointed a mediator in January. However, the mediation talks fell through.