The Bombay high court (HC) on Monday adjourned a petition filed by Chanda Kochhar, former managing director (MD) and chief executive officer (CEO) of ICICI Bank, challenging the termination of her services by the private bank, to December 9.
Senior advocate Vikram Nankani, representing Kochhar, sought permission from a division bench of justices Ranjit More and Makarand Karnik to amend her petition to challenge the Reserve Bank of India’s (RBI) post-facto approval of her termination. RBI had on March 13 approved the termination of Kochhar’s services.
In her petition, filed through Sujay Kantawalla, Kochhar termed the termination of her services as “ex-facie illegal, untenable and unsustainable in law” on the grounds that it was done without RBI’s prior approval, violating section 35B of the Banking Regulation Act, 1949. The section requires prior approval of RBI before terminating the services of a bank’s MD. Kochhar also complained about the bank’s refusal to pay her the agreed remuneration, although her plea for early retirement, with effect from October 4, 2018, was accepted by the bank’s board of directors.
According to her petition, Kochhar joined ICICI Bank in 1984 and became its MD and CEO in May 2009. Her appointment was last approved by RBI till March 31. Before she could complete the term, Kochhar, in October 2018, applied for early retirement, which was accepted by the bank’s board.
{{/usCountry}}According to her petition, Kochhar joined ICICI Bank in 1984 and became its MD and CEO in May 2009. Her appointment was last approved by RBI till March 31. Before she could complete the term, Kochhar, in October 2018, applied for early retirement, which was accepted by the bank’s board.
{{/usCountry}}On January 30, the bank’s group chief human resources officer told her that after taking into consideration the inquiry report submitted by Justice (retired) Shrikrishna, the board of directors had decided to “treat her separation from the bank as termination for cause” under the bank’s internal policies and the code of conduct. She was also told that the acceptance of her plea for early retirement was revoked and consequently, the ₹7.42 crore-bonus, paid from April 2009 to March 2018 during her tenure as MD and CEO, has to be recovered from her.
ICICI Bank objected to the maintainability of Kochhar’s petition. Its counsel, senior advocate DJ Khambata, said ICICI Bank was a private bank and not the “state” or its agency and so, a writ petition can’t be filed against it. Khambata also opposed Kochhar’s plea for amendment of the petition, contending that she cannot be allowed to improve her case when the petition itself is not maintainable.