Wipro has sought damages of Rs 25.15 crore from its former CFO Jatin Dalal, along with 18% interest per annum till the date of payment, for violating a non-compete clause when joining Cognizant.
As reported earlier, Wipro has moved a district court in Bengaluru against Dalal.
Court filings show Wipro has claimed that the non-compete clause stipulated that Dalal should not join any rival company for a period of 12 months from the date of his resignation. Dalal resigned from Wipro in September and his last working day with the company was November 30. He joined Cognizant as its CFO in December.
Meanwhile, Cognizant’s filing with the US Securities and Exchange Commission (SEC) shows that Dalal, while accepting its offer of employment, gave an undertaking that he was not bound by a non-compete clause with his former employer Wipro.
According to experts, this absolves Cognizant of any legal implication in the suit between Wipro and Dalal. The filing also shows that Dalal’s employment with Cognizant, too, comes with a non-compete clause.
The company 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.
In the signed acceptance of the employment offer from Cognizant, which has been filed with the US SEC, Dalal has said, “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.”
The letter adds, “(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.”
In the case filed by Wipro, Dalal has submitted an application seeking that the court to refer the matter for arbitration. Both parties have presented their arguments, 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.