Wipro To Enter Arbitration With Ex-CFO Jatin Dalal Over Joining Cognizant
Wipro claimed that Dalal's hiring as CFO of Cognizant had broken a non-compete agreement that prohibited him from working for 10 of Wipro's rivals for a period of 12 months following his departure.
Wipro to enter arbitration with ex-CFO Jatin Dalal over joining Cognizant and breaching of non-compete agreement.
In the joining rival raw, Wipro seeks Rs 25 crore in damages from former CFO Jatin Dalal, who turned to entering arbitration for joining rival Cognizant.
According to a civil court ruling on Wednesday in the southern Indian city of Bengaluru, Wipro, a key player in the IT industry, will enter into arbitration with its former CFO Jatin Dalal following his departure to join rival Cognizant.
In November, Wipro claimed that Dalal’s hiring as CFO of Cognizant had broken a non-compete agreement that prohibited him from working for 10 of Wipro’s rivals for a period of 12 months following his departure.
On December 1, Dalal started working for Cognizant, one day after leaving Wipro.
In its suit, Wipro requested a permanent injunction prohibiting Dalal from disclosing company-sensitive information to Cognizant, as well as 251.5 million rupees ($3.02 million) plus interest in damages.
Conditions in Dalal’s contract with Cognizant are comparable to those in his Wipro deal.
In response, Dalal declared in November that non-compete agreements were unenforceable because they violated Section 27 of the Indian Contract Act.
He filed for arbitration, arguing that the contracts he signed permitted this form of dispute settlement.
Wipro has taken similar action against its previous senior executives twice.
Wipro filed a complaint against Mohd Haque, the company’s former head of the healthcare and medical devices segment, who joined Cognizant, in the U.S. District Court in New Jersey last month.
However, the comments from Wipro, Cognizant, and Dalal were not stated for far on the update and development in the case.
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