Setback to Chanda Kochhar; High Court dismisses petition against termination of employment

By: |
Published: March 5, 2020 2:23 PM

The Bombay High Court on Thursday dismissed a petition filed by Chanda Kochhar against her termination as the managing director and chief executive officer of the ICICI Bank.

ED big action against ex-ICICI Chairman Chanda Kochhar and its family attaches Rs 78-cr worth propertiesThe bank’s counsel Darius Khambata had earlier argued that a judicial review cannot be incurred under Article 226 of the Constitution.

The Bombay High Court on Thursday dismissed a petition filed by Chanda Kochhar against her termination as the managing director and chief executive officer of the ICICI Bank. A division bench of Justices N M Jamdar and M S Karnik accepted the bank’s contention that Kochhar’s petition was not maintainable as the dispute was contractual and concerns a private body.

The bank’s counsel Darius Khambata had earlier argued that a judicial review cannot be incurred under Article 226 of the Constitution, which empowers high courts to issue directions, orders or writs in such a matter.

The bank sought dismissal of Kochhar’s petition. Kochhar was terminated from the ICICI Bank months after she voluntarily left the second largest private sector lender. The high profile former banker moved the high court on November 30, 2019, challenging termination of her employment by the ICICI Bank.

She contended that the bank also denied her remuneration and clawed back all the bonuses and stock options between April 2009 and March 2018 for her alleged role in granting out of turn loans worth Rs 3,250 crore to the Videocon Group which benefitted her husband Deepak Kochhar.

Chanda Kochhar’s counsel Vikram Nankani earlier argued that her termination came months after the bank approved her voluntary resignation on October 5, 2018 and therefore, the termination is “illegal, untenable, and unsustainable in law”.

The ICICI Bank then filed an affidavit, contending that the reliefs in the petition are not maintainable and it deserves to be dismissed as ICICI is a private bank and is administered under the Companies Act, not the state or its agency. Khambata argued that ICICI is a private banking company and Kochhar’s petition seeks to contest what are purely private contractual terms.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Yes Bank puts up for sale properties of Avantha Group, RHC Holdings for recovery of over Rs 1,000 crore
2ICICI Bank board to consider proposal to raise capital on Wednesday
3Finmin may review capital requirement of PSU banks after second quarter