Rajiv Bansal Files Caveat In Civil Court Against Infosys
Infosys was directed by a tribunal to pay its Bansal an outstanding severance package amounting to Rs 12.17 crore, with interest.
Former Infosys Ltd. chief financial officer Rajiv Bansal has filed a caveat in a civil court in Bangalore against the city-based company after an arbitral tribunal directed it to pay him an outstanding severance package amounting to Rs 12.17 crore with interest.
The caveat was filed on Tuesday after the country's second largest IT company said that it would take legal advice for further action on the tribunal's order, a representative of Indus Lawfirm, engaged by Bansal, told PTI.
It was to safeguard the interest of Bansal and prevent any ex-parte order without hearing him in suit or proceedings expected to be initiated by Infosys, he said. Infosys on Tuesday said that it had lost an arbitration to Bansal over severance package. The tribunal also rejected the company's counter claim for refund of a previously paid severance amount of Rs 5.2 crore and damages.
It had agreed to pay Bansal a severance amount of Rs 17.38 crore or 24 months worth of salary when he quit the firm in 2015, but suspended payments after he got Rs 5 crore as co-founder NR Narayana Murthy and others objected to the severance package as excessive. Following this, Bansal dragged his former employer to arbitration, seeking the remaining amount.
Bansal’s severance payout has been one of the issues that Infosys founders had raised to allege governance lapses at the software major. The caveat remains in force for 90 days and if during that duration no case is filed by the opposite party, the caveator has to file a fresh caveat.