BENGALURU: The Karnataka High Court has imposed costs of Rs 50,000 on Wipro Enterprises Private Limited, holding that the company’s stand in a dispute over ex gratia payment to a former employee amounted to an abuse of the process of law. The amount is to be paid to the former staffer, who was the plaintiff in the civil suit.
The dispute arose from Wipro’s failure to pay an ex gratia amount promised to Ratnesh Pandey, a Haryana resident who resigned from the company in September 2017 after nearly 12 years of service in various roles. Pandey submitted his resignation on August 6, 2017, which was accepted on September 18, 2017.
In recognition of his contribution, the company offered Pandey a lump-sum ex gratia payment of Rs 6.32 lakh, payable 18 months after the cessation of employment. The payment was subject to the condition that he would not join competing firms—specifically Philips India Limited or Bajaj Electricals Ltd—during the stipulated period.
When the amount was not paid even after the 18-month period and despite repeated representations, Pandey approached a civil court seeking release of the ex gratia sum along with 18% interest.
Wipro contested the claim, arguing that Pandey had not formally accepted the terms and conditions outlined in the cessation letter and was therefore not entitled to the payment. However, on July 23, 2024, the 20th additional city civil judge in Bengaluru ruled in Pandey’s favour.
Upholding the trial court’s decision, the High Court criticised Wipro’s position and imposed costs, describing the company’s conduct as an abuse of the legal process.
