India's second-largest information technology services company, is facing a legal battle on alleged visa misuse, on Thursday received a setback when a US federal court rejected its plea to decide the case through arbitration.
Infosys had earlier requested the court to decide the case filed by its former employee Jack Palmer on the alleged B-1 business visa misuse by an arbitrator instead of a judge or a jury. The company had cited the arbitration agreement Palmer had signed with the company in his employment contract.
“The arbitration agreement is unconscionable because of its lack of mutuality as to the availability of arbitration and the types of claims that may proceed to a judicial forum," the court said in its ruling.
According to legal experts, an arbitration could have helped Infosys to resolve the case much quicker as legal disputes in the US take longer for settlement.
The company's chief financial officer and member of the board declined to offer any comment on the subject, stating it was “sub-judice”.
In February, Palmer, had filed a complaint in Lowndes Country, Alabama, alleging the company was misusing the B-1 business visa programme to bring Indian employees to the US to work at clients’ site.
However, since Infosys was not present in Alabama, the case was transferred to the federal court on the company's request.