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Wipro and former CFO Dalal referred to arbitration for alleged violation of non-compete clause

Written by The Anand Market

Updated on:

(Reuters) – Indian IT major Wipro will face arbitration with its former chief financial officer Jatin Dalal after the latter joined rival Cognizant, according to a civil court order issued on Wednesday in the city of Bangalore, in southern India.

Wipro alleged in November that Dalal’s appointment as Cognizant’s chief financial officer violated a non-compete clause, which lists 10 Wipro competitors and stipulates that he cannot work in any capacity with them for 12 months after his departure.

Dalal joined Cognizant on December 1, the day after his last day of work at Wipro.

In its petition, Wipro sought 251.5 million rupees ($3.02 million) plus interest in damages, as well as a permanent injunction against Dalal from sharing sensitive company information with Cognizant.

Dalal’s deal with Cognizant has similar terms to his deal with Wipro.

In response, Dalal said in November that the non-compete clauses violated Section 27 of the Indian Contract Act and were therefore unenforceable.

He requested arbitration on the grounds that the agreements he signed allow disputes to be resolved by this method.

This is the second such action taken by Wipro against its former executives.

Last month, Wipro filed a lawsuit in the U.S. District Court in New Jersey against the company’s former head of healthcare and medical devices, Mohd Haque, who also joined Cognizant.

Wipro, Cognizant and Dalal did not immediately respond to requests for comment.

($1 = 83.2993 Indian rupees)

(Reporting by Haripriya Suresh and Sai Ishwarbharath B in Bengaluru; Editing by Janane Venkatraman)

Copyright 2024 Thomson Reuters.

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