A Bengaluru civil court on Wednesday referred for arbitration a dispute between Wipro and its former chief financial officer Jatin Dalal over the alleged violation of a non-compete clause. The court disposed of the tech firm’s suit by allowing an interim application filed by Jatin Dalal, who produced agreements indicating that disputes were to be settled through arbitration. Wipro approached the court in November 2023 seeking damages worth Rs 25.15 crore along with 18 per cent interest per annum on account of Dalal’s joining its rival firm Cognizant within 12 months of his resignation in September 2023. Wipro said in its suit that its former CFO violated a clause in his contract which prohibited his joining a rival firm within a year of quitting. Dalal later moved the court asking for the matter to be referred for arbitration as per agreements he had signed with Wipro. “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 & Conciliation Act, 1996, the parties are hereby referred to the arbitration in terms of the arbitration clause in the agreements,” the court of the 43rd additional city civil judge ruled. The court based its judgment on the digitally signed electronic records of the agreements. Dalal worked with Wipro for over 21 years and served as its CFO for seven years. He quit in September 2023 and joined Cognizant in December.
