Wipro, the Indian information technology multinational has taken its former chief financial officer to court for violating a non-compete clause when he moved on from the company to join Cognizant. Jatin Dalal, the former CFO, has been asked to pay up Rs. 25.15 crore plus 18 per cent interest per annum till the date of payment.
It is pertinent to mention here that Dalal was associated with Wipro for more than two decades and served as CFO since 2015.
As per the employment clause, Dalal was not allowed to join a rival firm for a year from the date of resignation. Dalal, on the other hand, put in his papers at Wipro in September and his last day at the firm was 30 November. He joined Cognizant the very next month, that is, December 2023, taking on the position of CFO there. He conveyed to Cognizant that he was not bound by any non-compete clause with Wipro, as per a filing by Cognizant with the US Securities and Exchange Commission.
That means, Cognizant has not played any illegal part in this issue.
Dalal’s appointment or contract with Cognizant also comes with a non-compete clause, clearly mentioning Wipro as a rival. The contract prevents Dalal from joining any competitor within a year of givingg in his resignation at Cognizant. The employment contract that Dalal has signed with Cognizant clearly states that he has entered into the agreement of his own accord.
Meanwhile, Dalal has requested the court to refer the matter for arbitration. The next hearing is to take place tomorrow, that is, 3 January 2024.
