- Wipro took legal action against its former CFO Jatin Dalal who transitioned to its rival company, Cognizant in December 2023.
- Jatin is requesting the court to move the case to arbitration.
- Wipro has also alleged a former executive, who shifted to Cognizant, of violating the non-compete clause in his employment contract.
Wipro sues Jatin Dalal
Wipro, the prominent technology services and consulting firm, has lodged a legal complaint against its former Chief Financial Officer Jatin Dalal, in the civil court in Bengaluru.
Subsequently, Jatin, serving as Cognizant’s CFO, has submitted an application, urging the court to transfer the case to arbitration, as the Times of India reports.
He filed an application under Section 8 of the Arbitration and Conciliation Act 1996. This section empowers the judicial authority to direct parties to arbitration for dispute resolution.
The initial hearing in the case took place on 28th November.
While the reasons behind the lawsuit remain uncertain, both parties have put forth their arguments.
The subsequent hearing is scheduled for 3rd January 2024, during which the court will decide whether the matter should be referred to arbitration.
Arbitration, an alternative to conventional court proceedings, involves an arbitrator rather than a judicial court, and it can be employed if stipulated in the employment contract.
Jatin relocates from Wipro to Cognizant
In 2002, Jatin joined Wipro and assumed the role of CFO in 2015, later taking on additional responsibilities as president in 2019.
He resigned from the position of CFO, with his final day being 30th November 2023.
On 21st September, Wipro announced the immediate appointment of Aparna C Iyer as Chief Financial Officer, who is also poised to join the Wipro Executive Board.
Shortly after Wipro’s official announcement, Cognizant, an American multinational IT services and consulting company, and Wipro’s direct competitor, revealed Jatin Dalal’s appointment as Chief Financial Officer.
In his new role, effective from 1st December he reports to Cognizant CEO Ravi Kumar S and oversees various responsibilities, including,
- Worldwide financial planning and analysis
- Tax
- Accounting and controllership
- Corporate development
- Investor relations
- Treasury and internal audit
- Enterprise risk management functions.
Jatin is reportedly expected to relocate to the US or UK at Cognizant upon completion of visa formalities.
Wipro sues ex-Senior Vice President
Wait, the legal proceedings are not over yet.
Wipro has filed a formal complaint against Mohd Haque, its former Senior Vice President (SVP) and Head of Healthcare and Medical Devices for the Americas.
According to the complaint, there is an alleged violation of the non-compete clause in his employment contract.
Wipro claims that Haque, who resigned in June this year had agreed to specific restrictions on his post-employment activities. The clause prohibits him from working for a specified group of Wipro’s competitors, including Cognizant, for at least 12 months.
Haque joined Wipro in 2010 as Vice President (VP) of Enterprise Application Services in Bengaluru.
In June 2023, he resigned from the company and shifted to Wipro’s direct competitor, Cognizant as SVP and Business Unit Head for life sciences.
Apparently, Haque made this transition before the anticipated end date of his non-compete agreement, initially set to conclude on August 1, 2023.
Wipro is pursuing a jury trial in this matter.
