Wipro, one of India’s leading IT companies, has initiated legal proceedings against its former Chief Financial Officer (CFO), Jatin Dalal. Wipro alleges that Dalal breached a non-compete clause by joining a rival company, Cognizant. The legal action seeks damages of Rs 25.15 crore, highlighting the complexities and legal repercussions of executive movements in the corporate world.
Breach of Non-Compete Clause:
Wipro accuses Jatin Dalal of violating a non-compete clause by joining Cognizant.
The clause restricts an employee from joining a competitor within one year of leaving the company.
Damages and Interest Claimed:
Wipro seeks damages of Rs 25.15 crore from Jatin Dalal.
The claim includes an additional 18% interest per annum until the date of payment.
Legal Proceedings in Bengaluru:
Wipro has filed a case in a district court in Bengaluru against Dalal.
The company asserts its rights under the non-compete clause to protect its interests.
Arbitration Request by Dalal:
Jatin Dalal has submitted an application requesting the court to refer the matter for arbitration.
Both parties have presented their arguments, and the next hearing is scheduled for January 3.
Recent High-Level Exits at Wipro:
Wipro has witnessed several top-level exits in recent times.
The company is actively enforcing non-compete clauses to safeguard its business interests.
Similar Complaint Against Another Executive:
Wipro has also filed a complaint against Mohd Haque, a former senior vice president.
Haque is accused of violating the non-compete clause in his employment contract.
The legal dispute between Wipro and its former CFO, Jatin Dalal, sheds light on the stringent measures companies take to protect their business interests. Non-compete clauses play a crucial role in maintaining corporate stability, and the outcome of this case will likely set precedents for such legal matters in the future. As the hearing progresses, it emphasizes the importance of clear contractual agreements and the adherence to ethical and legal standards in the corporate landscape. Wipro’s actions underscore the significance companies place on preserving their proprietary information and preventing talent poaching by competitors.
