BENGALURU: Wipro has demanded that its former CFO Jatin Dalal pay Rs 25 crore to the corporate for breach of contract, in keeping with a go well with filed within the civil courtroom in Bengaluru. TOI has obtained a replica of the courtroom papers. The corporate has additionally requested the courtroom to restrain Dalal from disclosing confidential info, and soliciting its clients, distributors and staff, and has mentioned it reserves the best to assert further damages at a later date.
Dalal left Wipro on November 30, and joined Cognizant as CFO the very subsequent day.
Wipro’s Rs 25 crore declare is predicated on the worth of RSUs (restricted inventory items) and PSUs (efficiency share items) granted to Dalal since he took on the CFO position in 2015. The corporate says within the courtroom submitting that each one of many grants got here with the situation that for a interval of 12 months after his final date of employment, Dalal couldn’t instantly or not directly have interaction with a competitor, couldn’t solicit a Wipro buyer to maneuver the prevailing enterprise to a different celebration, and couldn’t solicit a Wipro worker to be related to a competitor, provider or buyer.
The RSU and PSU agreements, it says, had additionally listed out 10 of Wipro’s rivals, and the record included Cognizant.
Wipro’s courtroom submitting additionally says Dalal gave an enterprise to Cognizant – which is publicly obtainable as a submitting on the US SEC – which mentioned, “…I’m not sure by the phrases of any settlement with any earlier employer or different celebration to chorus from competing instantly or not directly, with the enterprise of such earlier employer or different celebration, in any case, that may be violated by my coming into into this settlement and/or offering companies to Cognizant pursuant to the phrases hereof…..”
Wipro says this enterprise is “patently false” as Dalal continues to be sure by his obligations underneath the agreements with Wipro. “In consequence, the defendant has induced Cognizant to submit materially false and deceptive statements in its SEC submitting. The defendant’s actions and conduct reveals blatant disregard to his contractual and fiduciary obligation,” Wipro says.
The submitting says Dalal has signed a 12-month non-compete and non-solicitation settlement with Cognizant within the occasion he have been to stop the corporate, and says it’s “unconscionable” for Dalal to say that he doesn’t have the same obligation to Wipro.
The courtroom submitting additionally notes that Cognizant can be paying Dalal an annual compensation of $5.2 million, 5 instances greater than what he obtained at Wipro, and $300,000 as a sign-on bonus. Wipro alleges all that is proof that Dalal was appointed by Cognizant “because of the commercially delicate confidential info” that he has about Wipro, and which Cognizant expects to make use of, and to compensate Dalal for the probably lack of RSUs and PSUs.
An e-mail despatched to Wipro on the courtroom submitting didn’t elicit a response until the time of going to the press.
Dalal has filed an software asking the courtroom to refer the matter to arbitration. He says his contracts with Wipro enable for arbitration. His reply discover additionally states that Wipro is just not entitled to damages on the mere apprehension of confidential info being divulged.
The following listening to is scheduled on January 3 when the courtroom will cross an order on whether or not the matter ought to be referred to arbitration. Arbitration is using an arbitrator, as a substitute of a judicial courtroom, to resolve a dispute.
Dalal left Wipro on November 30, and joined Cognizant as CFO the very subsequent day.
Wipro’s Rs 25 crore declare is predicated on the worth of RSUs (restricted inventory items) and PSUs (efficiency share items) granted to Dalal since he took on the CFO position in 2015. The corporate says within the courtroom submitting that each one of many grants got here with the situation that for a interval of 12 months after his final date of employment, Dalal couldn’t instantly or not directly have interaction with a competitor, couldn’t solicit a Wipro buyer to maneuver the prevailing enterprise to a different celebration, and couldn’t solicit a Wipro worker to be related to a competitor, provider or buyer.
The RSU and PSU agreements, it says, had additionally listed out 10 of Wipro’s rivals, and the record included Cognizant.
Wipro’s courtroom submitting additionally says Dalal gave an enterprise to Cognizant – which is publicly obtainable as a submitting on the US SEC – which mentioned, “…I’m not sure by the phrases of any settlement with any earlier employer or different celebration to chorus from competing instantly or not directly, with the enterprise of such earlier employer or different celebration, in any case, that may be violated by my coming into into this settlement and/or offering companies to Cognizant pursuant to the phrases hereof…..”
Wipro says this enterprise is “patently false” as Dalal continues to be sure by his obligations underneath the agreements with Wipro. “In consequence, the defendant has induced Cognizant to submit materially false and deceptive statements in its SEC submitting. The defendant’s actions and conduct reveals blatant disregard to his contractual and fiduciary obligation,” Wipro says.
The submitting says Dalal has signed a 12-month non-compete and non-solicitation settlement with Cognizant within the occasion he have been to stop the corporate, and says it’s “unconscionable” for Dalal to say that he doesn’t have the same obligation to Wipro.
The courtroom submitting additionally notes that Cognizant can be paying Dalal an annual compensation of $5.2 million, 5 instances greater than what he obtained at Wipro, and $300,000 as a sign-on bonus. Wipro alleges all that is proof that Dalal was appointed by Cognizant “because of the commercially delicate confidential info” that he has about Wipro, and which Cognizant expects to make use of, and to compensate Dalal for the probably lack of RSUs and PSUs.
An e-mail despatched to Wipro on the courtroom submitting didn’t elicit a response until the time of going to the press.
Dalal has filed an software asking the courtroom to refer the matter to arbitration. He says his contracts with Wipro enable for arbitration. His reply discover additionally states that Wipro is just not entitled to damages on the mere apprehension of confidential info being divulged.
The following listening to is scheduled on January 3 when the courtroom will cross an order on whether or not the matter ought to be referred to arbitration. Arbitration is using an arbitrator, as a substitute of a judicial courtroom, to resolve a dispute.
