BENGALURU: Cognizant has agreed to a Rs 4-crore settlement deal in a transfer to resolve all pending disputes between its CFO Jatin Dalal & his former employer Wipro.
Wipro had sought Rs 25 crore from Dalal for breach of contract after he joined Cognizant as CFO instantly after leaving Wipro in Nov 2023. Cognizant paid Rs 4 crore to Dalal in direction of the settlement deal although it was not named in an order from a Bengaluru court docket in Jan, the place he invoked his rights to an arbitral tribunal.Cognizant wasn’t named within the arbitration proceedings both.
Cognizant mentioned that the phrases of the settlement, which was reached with none admission of legal responsibility by both occasion, are confidential. It additionally talked about that the settlement resolves all pending disputes between Dalal and Wipro. “The settlement was reached without admission of liability by either party. The company’s payment covers Dalal’s settlement payment to Wipro as well as reimbursement of his legal fees,” Cognizant mentioned in a submitting with the SEC on Tuesday.
Some proxy advisory consultants have mentioned that this settlement has raised questions on whether or not it has set a sure precedent within the trade relating to non-compete contractual obligations.
The Rs 25-crore declare was based mostly on the worth of RSUs and PSUs granted to Dalal since he grew to become CFO in 2015. The firm had mentioned within the court docket 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 straight or not directly interact with a competitor, couldn’t solicit a Wipro buyer to maneuver the present enterprise to a different occasion, and couldn’t solicit a Wipro worker to be related to a competitor, provider, or buyer.
Saurabh Govil, president and CHRO at Wipro, mentioned, “We are glad this issue has been resolved, safeguarding our contractual rights.” When TOI requested Wipro whether or not a compromise between Dalal and Wipro was reached, provided that the settlement quantity is far smaller in comparison with what Wipro had sought, the corporate did not reply to TOI’s queries.
Wipro had sought Rs 25 crore from Dalal for breach of contract after he joined Cognizant as CFO instantly after leaving Wipro in Nov 2023. Cognizant paid Rs 4 crore to Dalal in direction of the settlement deal although it was not named in an order from a Bengaluru court docket in Jan, the place he invoked his rights to an arbitral tribunal.Cognizant wasn’t named within the arbitration proceedings both.
Cognizant mentioned that the phrases of the settlement, which was reached with none admission of legal responsibility by both occasion, are confidential. It additionally talked about that the settlement resolves all pending disputes between Dalal and Wipro. “The settlement was reached without admission of liability by either party. The company’s payment covers Dalal’s settlement payment to Wipro as well as reimbursement of his legal fees,” Cognizant mentioned in a submitting with the SEC on Tuesday.
Some proxy advisory consultants have mentioned that this settlement has raised questions on whether or not it has set a sure precedent within the trade relating to non-compete contractual obligations.
The Rs 25-crore declare was based mostly on the worth of RSUs and PSUs granted to Dalal since he grew to become CFO in 2015. The firm had mentioned within the court docket 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 straight or not directly interact with a competitor, couldn’t solicit a Wipro buyer to maneuver the present enterprise to a different occasion, and couldn’t solicit a Wipro worker to be related to a competitor, provider, or buyer.
Saurabh Govil, president and CHRO at Wipro, mentioned, “We are glad this issue has been resolved, safeguarding our contractual rights.” When TOI requested Wipro whether or not a compromise between Dalal and Wipro was reached, provided that the settlement quantity is far smaller in comparison with what Wipro had sought, the corporate did not reply to TOI’s queries.