Delhi HC refers Ashneer Grover-BharatPe dispute over information leak to arbitration

The Delhi High Court has referred to arbitration the dispute between BharatPe and its former Managing Director, Ashneer Grover, who is accused of leaking confidential company information on social media, allegedly breaching his August 2021 employment agreement.

Justice C Hari Shankar passed the order on August 22, appointing a sole arbitrator to address the issues between the two parties.

BharatPe had filed a plea seeking arbitration, arguing that Grover's actions had compromised the company's confidentiality, particularly regarding equity allocations and secondary sales associated with the fintech’s $370 million-Series E funding round in 2021.

Grover responded to the notice of arbitration through his counsel and did not object to the constitution of an arbitral tribunal. However, he did not agree to the appointment of the sole arbitrator proposed by BharatPe, according to a report by LiveLaw.

The legal wrangling dates back to November last year when BharatPe’s parent company, Resilient Innovations, initiated proceedings against Grover. The company sought an injunction to prevent further disclosure of what it considers sensitive information after Grover shared details on social media.

Despite Grover deleting the post, BharatPe argues that he retains confidential company information even after his resignation, violating his employment agreement.

This arbitration order is part of a broader legal struggle between BharatPe and Grover, which includes a civil suit accusing Grover and his family of embezzlement and seeking damages of up to Rs 88.67 crore.