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Wipro’s legal case against ex-CFO Jatin Dalal referred for arbitration
Court allows former Wipro CFO's application for arbitration
A Bengaluru civil court has concluded Wipro’s legal battle against its former chief financial officer, Jatin Dalal, by directing the matter to arbitration.
The court allowed an interlocutory application (IA) by Dalal seeking arbitration with his former company on Wednesday.
Referring the matter for arbitration, the court in its order said, "I.A.No.5 filed by the defendant/applicant under Sec.8 of the Arbitration & Conciliation Act, 1996 is hereby allowed. Consequently, by exercising power under Sec.8(1) of the Arbitration & Conciliation Act, 1996, the parties are hereby referred to the arbitration in terms of the arbitration clause in the agreements."
Another application by Dalal seeking production of certain documents was, however, dismissed by the court, which noted that these documents were already filed.
"I.A.No.4, filed by the defendant under Sec.8(2) of the Arbitration & Conciliation Act, 1996 is hereby dismissed, as the digitally signed electronic records of the agreements with certificate under Sec.65-B of the Indian Evidence Act, have already been produced by the plaintiff," the XLIII Additional City Civil and Sessions Judge said in the order.
Why Wipro filed suit against its former CFO Jatin Dalal?
Wipro initiated legal action against its former CFO, Jatin Dalal, on November 28, seeking a substantial compensation of ₹25,15,52,875, along with an 18 per cent interest.
The lawsuit alleges Dalal's violation of a specific clause in his employment contract by joining Cognizant within a year of departing from Wipro.
According to the non-compete clause, Wipro alleges that Dalal is obligated to compensate the IT major for the value of the Restricted Stock Units (RSUs) granted to him or the sum equivalent to his total remuneration over the previous 12 months.
Cognizant Technology Solutions appointed Jatin Dalal as its CFO in September, just a week after his resignation.
Dalal had been associated with Wipro since 2002 and assumed the role of CFO in 2015. His tenure concluded on November 30, with Aparna Iyer stepping in as his successor at Wipro.
