Nykaa sues former CBO Gopal Asthana for breach of confidentiality
In a petition submitted to the Bombay High Court, the Falguni Nayar-led beauty major has also accused Asthana of misappropriation of proprietary data and seeking to harm its business.
Beauty and cosmetics retailer has sued its former chief business officer Gopal Asthana, the current CEO of , for breaching confidentiality and misappropriation of proprietary data.
The news was first reported by The Economic Times.
The Falguni Nayar-led beauty major has also accused Asthana of seeking to harm its business by poaching former Nykaa staff.
“The disputes and differences between the parties in the present Section 9 petition arise out of appointment letter dated 11th November, 2019 and the letters granting ESOP and OCRPS as more particularly set out in the Petition,” reads the court order accessed by YourStory.
According to the report in The Economic Times, in its petition to the Bombay High Court, Nykaa said it had paid Asthana substantial remuneration.
Nykaa is pursuing significant financial compensation, including the recovery of Rs 19 crore in employee stock option benefits availed of by Asthana. The company is also seeking Rs 5 crore in damages for loss of goodwill and adverse effects on business performance.
Additionally, Nykaa has requested that the court issue an injunction to bar Asthana from utilising any proprietary data from Nykaa in his current position.
In a hearing on September 4, Justice Arif Doctor examined the case and designated Justice Akil Kureshi, the former Chief Justice of the Rajasthan High Court, as the sole arbitrator. This appointment followed the parties' mutual agreement to settle the dispute through arbitration.
The court later converted the Section 9 petition (request for interim relief) into an application under Section 17 of the Arbitration and Conciliation Act, 1996, to be managed by Justice Kureshi. The arbitrator will oversee the resolution process, with both parties sharing the expenses. The arbitration will happen in Mumbai.
Asthana joined Tata Cliq in June 2023 following his departure from Nykaa. He has over two decades of experience in the retail industry. He had earlier worked with Future Group and . His tenure at Nykaa lasted over three-and-a-half years, starting in November 2019.
Edited by Swetha Kannan