SC Rejects Appeal by Kochhar Against Bombay HC Order on Sacking

The Bombay HC had on 5 March 2020 dismissed a petition filed by Kochhar against her termination as from ICICI Bank.

File photo of Chanda Kochhar.

(File Photo: IANS)

The Supreme Court on Tuesday, 1 December, refused to interfere with the Bombay High Court order which dismissed the petition filed by former ICICI Bank Chief Executive Officer and Managing Director, Chanda Kochhar challenging her termination in 2019, in connection with the ICICI-Videocon case, ANI reported.

The Bombay HC on 5 March, had dismissed a petition filed by Kochhar against her termination as the managing director and chief executive officer of the ICICI Bank.

A division bench of Justices NM Jamdar and MS 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.

ED Files Charge Sheet

The Enforcement Directorate (ED) earlier this month filed its first charge sheet in the ICICI-Videocon loan case, naming Chanda Kochhar, her husband Deepak Kochhar, Videocon group chief Venugopal Dhoot and seven firms in a money laundering case, IANS reported.

Deepak Kochhar is currently in judicial custody after he was arrested by the ED.

The case pertains to alleged irregularities in sanctioning six loans worth Rs 1,875 crore to Videocon Industries Limited, Videocon International Electronics Ltd and four other companies associated with the Videocon group between June 2009 and October 2011.

Termination ‘Illegal, Untenable’: Counsel for Kochhar

Kochhar was terminated from the ICICI Bank months after she voluntarily left the second largest private sector lender, PTI reports.

The high profile former banker moved the high court on 30 November 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.

According to PTI, Chanda Kochhar’s counsel Vikram Nankani earlier argued that her termination came months after the bank approved her voluntary resignation on 5 October, 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.

(With inputs from PTI, IANS and ANI.)