Nykaa vs Tata Cliq: Fashion site accuses ex-CBO Gopal Asthana of data theft and employee poaching
Beauty and fashion product retailer Nykaa has sued its former Chief Business Officer Gopal Asthana, who now heads Tata Digital’s fashion business Tata Cliq, accusing him of breaching confidentiality, misappropriation of proprietary data and seeking to harm its business.
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FollowIn a dramatic courtroom showdown, Nykaa Fashion has instigated a fierce legal confrontation against its erstwhile Chief Business Officer, Gopal Asthana. The renowned beauty and fashion retailer has accused Asthana of violating confidentiality agreements, misappropriating proprietary data, and undermining its business by enticing former Nykaa employees to join Tata Cliq, the e-commerce platform he now leads.
Nykaa's scathing petition, lodged with the Bombay High Court, alleges that Asthana, who occupied the pivotal role of CBO from November 2019 until his recent departure, exploited confidential business intelligence to benefit Tata Cliq. The company asserts that Asthana has actively engaged in a covert campaign to lure his former colleagues to Tata Cliq, with a notable number of Nykaa employees allegedly making the transition over the past year.
In response to these alleged infractions, Nykaa is pursuing significant financial restitution, demanding the return of Rs 19 crore in stock options and employee stock option benefits that Asthana accrued during his tenure. Additionally, Nykaa seeks Rs 5 crore in damages for the erosion of goodwill and detrimental impact on its business performance, according to a report by Bar and Bench.
The retailer is also requesting that the court impose an injunction to prevent Asthana from utilizing any proprietary business data from Nykaa in his current capacity.
During the court proceedings on September 4, Justice Arif Doctor scrutinized the petition and appointed Justice Akil Kureshi, the former Chief Justice of the Rajasthan High Court, as the sole arbitrator. This appointment follows a mutual agreement by both parties to resolve the dispute through arbitration rather than protracted litigation.
Nykaa has emphasized the urgency of securing interim relief to avert further data misuse and potential harm to its business operations. While Asthana has acquiesced to the arbitration process, he has requested that any interim relief be granted on a “without prejudice” basis. This stipulation ensures that while interim measures are in place, Asthana's current employment and related obligations remain unaffected.
The court has consequently transitioned the Section 9 petition—seeking interim relief—into an application under Section 17 of the Arbitration and Conciliation Act, 1996. Justice Kureshi will oversee the arbitration process, with the costs shared between both parties, and the proceedings set to occur in Mumbai.
Representing Nykaa are Senior Advocate Navroz Seervai, Advocate Tushar Hathiramani, and the esteemed team from Naik Naik & Co, including Advocates Ameet Naik, Madhu Gadodia, Sujoy Mukherji, and Deveesha Tudekar.
On the opposing side, Asthana is defended by Senior Advocate Zal Andhyarujina, supported by Advocates Karl Tamboly, Karan Bhide, Arup Perera, N Grewal, and Y Badani from Wadia Ghandy & Co.
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