Wipro challenged former CFO Dalal's arbitration request

livemint.com:

ruled that the case should be settled through arbitration, as stipulated in most of the agreements between the parties. “[I]n case where there is arbitration clause in agreement, it is obligatory for the court to refer the parties to arbitration in terms of their arbitration agreement and nothing remains to be decided in the original action if such an obligation is made except to refer the dispute to an Arbitrator," said the order dated 3 January, which was made available on Friday. Wipro, according to the full order reviewed by Mint, had asserted that the arbitration clause in their agreement with Dalal was flawed.

The company argued that the clauses indicated a preference for resolving disputes in Bengaluru courts rather than through arbitration. However, justice Doddegowda's ruling dismissed this claim, stating that all but one agreement included an arbitration resolution clause. The case will now be handled under the Arbitration and Conciliation (Amendment) Act, 2015, with both parties agreeing to appoint a sole arbitrator in Bengaluru.

Arbitration is a legal dispute resolution process that involves an impartial third party resolving a dispute within a pre-defined time between the aggrieved parties without having to go to court. The dispute stems from Dalal's resignation from Wipro, announced on 21 September 2023, with 30 November being his last day at the company. Shortly after, Cognizant declared that Dalal would join them as CFO in December.