Wipro, the Indian information technology conglomerate, sued its former chief financial officer earlier this year for violating a non-compete contract when he left the business to join Cognizant. Cognizant has agreed to pay Jatin Dalal $505,087 to resolve his claim with his former employer.
The board of directors at Cognizant Technology Solutions has approved this settlement, allowing Dalal to refund his legal bills while also settling the case with Wipro for good.
Wipro demanded Dalal to pay up to Rs. 25.15 crore plus 18% annual interest until the payment deadline. Interestingly, Dalal has been with Wipro for over two decades, serving as CFO since 2015.
Dalal’s employment contract with Wipro stated that he was not permitted to join a rival firm for a year after his resignation. Jatin Dalal signed his papers at Wipro in September 2023, and his last day was November 30, 2023.
He began working as CFO at Cognizant the next month, in December 2023. He informed Cognizant that he was not bound by any non-compete provision with Wipro, according to a filing by Cognizant with the US Securities and Exchange Commission. Wipro understandably sought damages, claiming that Dalal had broken non-compete and secrecy agreements. Clearly, Cognizant has not committed any criminal acts in this matter.
