Dispute of ESOP is referable to arbitration

Piyush Kumar Dutt Vs Vishal Mega Mart Private Limited (Delhi High Court)

Held that dispute in respect of ESOP which forms part of the Employment Agreement, would be referable to arbitration as provided in Clause 21 of ESOP.

Facts-

A petition u/s. 11(6) of the Arbitration & Conciliation Act, 1996 has been filed by the petitioner for the appointment of an arbitrator. Dispute arose between the parties out of the Employment Agreement dated 14.01.2019. The petitioner was serving as the Chief Human Resource Officer in the respondent company till his resignation on 31.05.2021.

During the course of the employment of the petitioner, 17,05,023 stocks came to be vested with the petitioner for a period of 10 years. In addition to 17,05,023 stocks, the petitioner also had 8,41,844 equity shares and 4,26,381 equity shares as performance-based options.

Please become a Premium member. If you are already a Premium member, login here to access the full content.