“Wipro Pursues ₹25 Crore Damages, Alleges Breach in Lawsuit Against Cognizant’s Ex-CFO”
In a continued clash between major IT players, Wipro has intensified its legal battle against Cognizant by targeting its former CFO, Jatin Dalal. Wipro’s lawsuit seeks ₹25 crores in damages from Dalal, alleging a breach of contract after he transitioned to Cognizant.
In a continued clash between major IT players, Wipro has intensified its legal battle against Cognizant by targeting its former CFO, Jatin Dalal. Wipro’s lawsuit seeks ₹25 crores in damages from Dalal, alleging a breach of contract after he transitioned to Cognizant.
The lawsuit represents the escalating conflict between tech giants, as Wipro and Infosys accuse Cognizant of unethical employee poaching practices. Wipro’s recent move follows a lawsuit it filed against Dalal and other former executives who joined Cognizant, citing breach of employment contracts.
Court documents accessed by the Times of India reveal Wipro’s allegations of Dalal violating his employment contract and the subsequent demand for ₹25 crore in damages. The legal action includes a request for an interest payment at a rate of 18% per annum, calculated from September 19 until the settlement of the amount.
Furthermore, Wipro has imposed a restraining injunction on Dalal, preventing the disclosure of confidential information related to the case and prohibiting any form of solicitation of employees or customers.
In response, Dalal has appealed to the Bengaluru civil court, urging for the matter to be resolved through arbitration, aiming for an out-of-court settlement. Meanwhile, the competitive landscape sees major IT companies targeting Cognizant for alleged unethical poaching tactics against their employees.
The legal skirmish is not solely confined to Wipro, as Infosys, India’s leading IT company, has also issued a notice to Cognizant. The notice intimates a potential legal course, warning Cognizant against poaching top executives through what Infosys perceives as unethical means.
Cognizant’s recent hiring spree, which included 20 top executives from various firms, including those who resigned from Infosys, sparked concerns. While non-compete clauses might not hold legal ground, the notice from Infosys was primarily aimed at dissuading further aggressive talent acquisitions by Cognizant, according to a source quoted by Moneycontrol.
This legal tussle unfolds against the backdrop of economic slowdown pressures faced by tech giants like Wipro and Infosys in the US and European markets. Shareholders are pushing for accelerated growth and increased profitability, adding fuel to these confrontations within the competitive tech industry.
Sources By Agencies
About The Author
