The Bengaluru City Civil Court has referred IT major Wipro’s lawsuit against its former Chief Financial Officer (CFO) to arbitration, thus ruling that Dalal’s counter petition can be admitted.

Arbitration is a form of alternative dispute resolution that resolves disputes outside the judiciary courts. Wipro had sued Dalal accusing him of breaking the non-compete agreement in his work contract. The company had sought ₹25.15 crore in damages along with 18 per cent interest per annum till the date of payment.

Dalal’s non-compete agreement condition stated that he must wait for a full year from his resignation date before joining any other competitor company, a media outlet reported. Wipro had filed a lawsuit against Dalal in the Bengaluru civil court on November 28.

  • Also read: Wipro demands ₹25 crore in damages from former CFO for violating non-compete agreement

Following the lawsuit, the former executive submitted an application at the beginning of December in accordance with Section 8 of the Arbitration and Conciliation Act of 1996, which gives the court the ability to order the parties to arbitration.

“I.A.No.4, filed by the defendant under Sec.8(2) of the Arbitration & Conciliation Act, 1996, is hereby dismissed, as the digitally signed electronic records of the agreements with a certificate under Sec.65-B of the Indian Evidence Act have already been produced by the plaintiff,” the court ruling read.

I.A.No.5 filed by the defendant/applicant under Sec.8 of the Arbitration & Conciliation Act, 1996. is hereby allowed. Consequently, by exercising power under Sec.8(1) of the Arbitration &amp Conciliation Act, 1996, the parties are hereby referred to the arbitration in terms of the arbitration clause in the agreements, it further said.

Dalal had joined Cognizant as CFO on December 1. He was appointed in September by the company. The Wipro veteran succeeds Jan Siegmund, who intends to retire in early 2024. Dalal was with Wipro for 21 years and assumed the position of CFO in 2015. He was relieved from his services on November 30, 2023.

Reportedly, in the recent past, Wipro has also filed a case against Mohd Haque, its former Senior Vice-President (SVP) and head of healthcare and medical devices for the Americas, alleging that he violated non-compete agreements by taking a position as the SVP and head of the life sciences business unit at Cognizant, Wipro’s direct rival. According to reports, Wipro has also claimed that he violated his work contract by uploading and sending seven files from his personal Gmail account.

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