Cognizant’s filing with the US Securities and Exchange Commission shows that former Wipro CFO, Jatin Dalal while accepting its offer of employment gave an undertaking that he was not bound by any non-compete clause with his former employer Wipro. According to legal experts, this absolves Cognizant of any legal implication in the legal suit between Wipro and Dalal.
The filing also shows that Dalal’s employment with Cognizant has a non-compete clause and it has specifically mentioned Wipro as its direct competitor. As per this clause, Dalal cannot join a rival firm for a period of 12 months from his date of resignation.
“I hereby represent and warrant to Cognizant that (I) I am entering into this agreement voluntarily and that the performance of my duties and responsibilities hereunder will not violate any agreement between me and any other person, firm, organisation, or other entity, (II) I am not bound by the terms of any agreement with any previous employer or other parties to refrain from competing, directly or indirectly, with the business of such previous employer or other party, in any case, that would be violated by my entering into this agreement and/or providing services to Cognizant pursuant to the terms hereof, and (III) I have read, understand and accept the above offer of employment and agree to the terms and conditions set forth above,” Dalal has stated in his signed acceptance of employment offer from Cognizant, which has been filed with the US SEC.
As reported earlier, Wipro has moved a district court in Bengaluru against Dalal for violating the the non-compete clause by joining Cognizant.
The court filings show that Wipro has claimed that the clause stipulated that Dalal should not join any other rival company for a period of 12 months from the date of his resignation. Dalal had resigned from Wipro in September and his last working day with the company was on November 30. He joined Cognizant as its CFO in December. Wipro has sought from Dalal damages of Rs 25.15 crore along with 18% interest per annum till the date of payment, for violation of the clause as per the court filing.
On his part, as a counter-move, Dalal has also submitted an application seeking the court to refer the matter to arbitration. Both parties have presented their arguments to the court, and the next hearing has been scheduled for January 3.
Dalal worked with Wipro for over 21 years and served as its CFO since 2015.
