Wipro’s case against ex-CFO Jatin Dalal referred to Arbitration

Wipro, a major Indian IT company, and its former CFO, Jatin Dalal, will now settle their dispute under arbitration, following an order from Bengaluru civil court judge Doddegowda K.

The court directed both parties to resolve the case under the Arbitration Conciliation Act, 1996. Wipro had filed a lawsuit claiming damages of Rs 25.15 crore against Dalal for violating the non-compete clause in his employment contract. Dalal, in response, requested arbitration as per his employment contract rights. The arbitral tribunal is required to announce the decision within a year, with the possibility of extension.

The case revolves around Dalal’s resignation as Wipro’s CFO after 21 years to join rival Cognizant. Wipro alleges Dalal violated the non-compete clause, and the lawsuit specifies a claim of Rs 25.15 crore in damages with an 18% annual interest. The employment agreement also includes restrictions on disclosing confidential information and soliciting customers or employees.

Wipro has raised concerns about Dalal’s obligations at Cognizant. The company filed a similar complaint against another former executive, Mohd Haque, who allegedly violated a non-compete clause by joining Cognizant. The complaint accuses Haque of possessing and sharing confidential information.