Synopsis:
Wipro is seeking a claim of Rs 25 crore plus interest from its former CFO, Jatin Dalal, for his move to Cognizant within 12 months of leaving Wipro. This legal action underscores Wipro's efforts to enforce contractual obligations and protect its interests regarding employee transitions to competitor firms.
Wipro Ltd's dispute with former Chief Financial Officer (CFO) Jatin Dalal appears to be escalating, according to a recent news report. In a lawsuit filed in November in a Bengaluru court, Wipro claimed that Dalal violated a non-compete clause by joining Cognizant within 12 months. The company is seeking damages of Rs 25.15 crore from Dalal, along with 18% interest per annum until the payment date.
The complaint stated, "As per the Agreements, the Defendant is liable to recompense the Plaintiff the total number of RSU granted multiplied by the share price prevailing on the date of the award OR the calculated sum equivalent to the gross remuneration earned by the Defendant during the last 12 (twelve) months of service (as applicable). However, without prejudice and in good faith the Plaintiff has restricted its claim, which is calculated as INR 25,15,52,875/- (Rupees Twenty Five Crores Fifteen Lakhs Fifty-Two Thousand Eight Hundred and Seventy-Five) along with interest calculated at 18% (eighteen per cent) per annum until the date of payment."
Jatin Dalal's last day at Wipro was November 30. In his new position at Cognizant, he is set to take over from Jan Siegmund, who plans to retire in early 2024. Dalal will report to Cognizant's CEO Ravi Kumar S.
This legal dispute comes after Wipro filed a complaint against another former senior executive, Mohd Haque, for allegedly violating a non-compete clause to join Cognizant. Haque, Wipro’s former senior vice president (SVP) and head of healthcare and medical devices for the Americas, joined Cognizant as its SVP and business unit head for life sciences before the end of his non-compete clause tenure until August 1, 2023.
