Wipro claims Rs 25 crore damages from former CFO Jatin Dalal for breach of contract – Times of India

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BENGALURU: Wipro, which recently filed a suit against its former CFO Jatin Dalal in the civil court in Bengaluru, has asked the former CFO to pay Rs 25 crore in damages for breach of contract, the certified copy of the court papers accessed by The Times of India showed. Wipro has filed a suit against Dalal for breach of employment agreement. Wipro has also asked Dalal to pay an interest on the amount calculated at the rate of 18% per annum from September 29 till the date of payment. There is also a permanent injunction restraining Dalal from disclosing confidential information, soliciting customers or employees in any manner. Dalal has filed an application asking the court to refer the matter to arbitration.
Wipro counts Cognizant as one of its competitors. Wipro has raised a question about Dalal’s undertaking where he has given a written agreement to the US SEC which said, “,..I am not bound by the term of any agreement with any previous employer or other party to refrain from competing directly or indirectly, with the business of such previous employer or other party, in any case, that would be violated by my entering into this agreement and/or providing services to Cognizant pursuant to the terms hereof…..” Wipro, the certified copy showed, said,”this undertaking of the defendant (Dalal) is patently false on the very face of it as the defendant continues to be bound by his obligations under the agreements and any statement of the defendant alluding to the contrary is false and misleading.” “As a result the defendant has caused Cognizant to submit materially false and misleading statements in its SEC filing.The defendant’s actions and conduct shows blatant disregard to his contractual and fiduciary obligation,” the papers showed. TOI is awaiting a statement from Wipro and the same will be updated soon.
The next hearing is scheduled on January 3 when the court will pass an order on whether the matter should be referred to arbitration. Arbitration is the use of an arbitrator, instead of a judicial court, to resolve a dispute, and this method can be used if the employment contract provides for it. Dalal joined Cognizant as CFO on December 1. The first hearing in the case was held on November 28. In early December, Dalal filed an application under Section 8 of the Arbitration and Conciliation Act 1996 that provides powers to the judicial authority to direct the parties to arbitration.
Dalal reports to Cognizant CEO Ravi Kumar. A two-decade old veteran at Wipro, Dalal had served as CFO since 2015 and assumed additional responsibilities as president from 2019. At Cognizant, he’s expected to move to the US or UK once visa formalities are completed.
Wipro also recently filed a complaint against Mohd Haque, its former senior vice-president (SVP) and head of healthcare and medical devices for the Americas, for violating non-compete covenants by joining Wipro’s direct competitor, Cognizant, as the SVP and business unit head for life sciences. Wipro also alleged that he uploaded and emailed “seven files” from his personal Gmail account, in violation of his employment contract.
A few years ago, former Infosys CFO Rajiv Bansal invoked his rights to an arbitral tribunal to contest Infosys’ decision to suspend the payment of about Rs 12 crore of the severance pay that was promised to him at the time of his leaving in 2015. Infosys had agreed to pay him Rs 17.3 crore as severance, but it disbursed only Rs 5 crore of it, and held back the rest, accusing Bansal of breach of confidentiality agreements and deletion of data from official systems. The arbitrator ruled in his favour.


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