Wipro, the third-largest software services exporter in India, has initiated legal proceedings against its former Chief Financial Officer (CFO), Jatin Dalal, in a Bengaluru civil court. While the exact grounds for the lawsuit remain undisclosed, reports suggest that Dalal has urged the court to transfer the case to arbitration. Dalal, who had served as Wipro’s CFO since 2015, resigned from the company on November 30. Following his departure, Cognizant Technology appointed Dalal as their CFO in September, succeeding Jan Siegmund, who plans to retire in early 2024. In his new role at Cognizant, Dalal will oversee various global financial functions.
Despite having been with Wipro for over two decades, Dalal’s exit adds to a series of high-profile resignations at the firm over the past few months. The legal dispute with Dalal emerges shortly after Wipro filed a complaint against a former senior executive for allegedly violating a non-compete clause by joining Cognizant. The former senior vice-president, Mohd Haque, who headed healthcare and medical devices for the Americas, joined Cognizant as its senior vice-president and business unit head for life sciences before the expiration of his non-compete clause.
Recent reports indicate that the legal conflict between Wipro and Jatin Dalal may intensify. Moneycontrol reported that Wipro filed a lawsuit in November, asserting that Dalal breached a non-compete clause by joining Cognizant within 12 months. The company is seeking damages of Rs 25.15 crore from Dalal, along with 18% interest per annum until the payment date.
The complaint alleges, “As per the Agreements, the Defendant is liable to recompense the 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 the 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 per cent) per annum until the date of payment.”
Wipro’s legal actions also extend to its complaint against former senior executive Mohd Haque, who is accused of violating a non-compete clause and allegedly possessing confidential information. The company alleges that Haque uploaded and emailed seven files containing confidential information from his personal Gmail account in June, after leaving Wipro in June following a nearly 13-year tenure at the company.
