The Bengaluru Civil Court has referred the lawsuit filed by IT major Wipro against its former chief financial officer (CFO) Jatin Dalal to arbitration, according to several media reports.
The court took this decision as Dalal produced agreements that indicated that disputes were to be settled through arbitration, reported Indian Express.
Wipro had filed a case against Dalal, as he was joining rival firm Cognizant. This goes against the non-compete clause that Dalal had signed with Wipro as he joins Cognizant before he completes the cooling-off period of a year.
The lawsuit filed by Wipro also claimed damages worth Rs 25.15 crore from Dalal, along with 18 per cent interest per annum till the payment is done.
An email sent to Wipro on the decision of the Court and the next steps remained unanswered.
HR experts opine that Wipro is taking legal action against Dalal to set a precedent for any future senior-level changes.
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Wipro has also filed a case against its former senior vice president and head of healthcare and medical devices for the Americas, Mohd Haque in the US. Haque too has joined Cognizant. But in the case of Haque, the allegations are of a serious nature.
Wipro has alleged that Haque is in possession of files containing confidential information, which he sent to himself using his personal email account. An email sent to Wipro for comment on Haque’s case said: “Wipro does not comment on matters that are sub-judice."