An Indian multinational corporation, Wipro, and its former Chief Financial Officer (CFO) Jatin Dalal who has joined Cognizant as Chief Finacial officer will engage in Arbitration as per the order of the Bengaluru Civil Court to resolve the disagreement. The hearing was scheduled for January 3.
The order said, “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 a certificate under Sec.65-B of the Indian Evidence Act, have already been produced by the plaintiff.”
“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”, it read.
The company filed a complaint against its former Chief Financial Officer (CFO) Jatin Dalal who had joined Cognizant recently. Jatin Dalal’s last date of work at Wipro was on November 30. He joined Cognizant from Wipro where, since April 2015, he served as Chief Financial Officer and assumed additional responsibilities as President in 2019. The lawsuit is filed in Bengaluru’s civil court.
Wipro seeks Rs 25 crore plus interest for joining Cognizant within 12 months for breaching the non-compete clause by joining Cognizant.
The complaint read, “As per the Agreements, Defendant is liable to recompense 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 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 percent) per annum until the date of payment,” the company added.
The order was shared by Law Live and can be read by a click here.
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