Chanda Kochhar Brings A Fresh Case Against ICICI Bank Claiming Retirement Benefits
Chanda Kochhar has moved a suit against ICICI bank before the Bombay High Court seeking retiral dues and benefits.
Former managing director and chief executive officer of ICICI Bank Ltd. Chanda Kochhar has approached the Bombay High Court claiming retiral dues and benefits.
Kochhar has filed a suit seeking specific performance of ICICI Bank's contractual obligations due to her since her early retirement on October 4, 2018, lawyers involved in the filing told BloombergQuint.
On Thursday, Justice AK Menon granted the bank two weeks to file its response.
In the first half of 2018, ICICI had conducted an independent probe into an anonymous whistleblower’s complaint against Kochhar, who is facing allegations of impropriety over loans to the Videocon Group.
Subsequently, on June 6, the bank constituted an enquiry committee headed by former judge of the Supreme Court of India Justice BN Srikrishna.
Amid this, Kochhar informed ICICI that she would go on leave till the enquiry is completed. By a letter dated October 3, 2018, she sought early retirement which was accepted by ICICI subject to certain conditions.
Meanwhile the enquiry report, with the scope period of April 1, 2009 to March 31, 2018, concluded that Kochhar was in violation of ICICI Bank's Code of Conduct, its framework for dealing with conflict of interest and fiduciary duties, applicable Indian laws, rules and regulations.
After this, the bank's board treated Kochhar's separation as ‘Termination for Cause’.
ICICI also revoked all her existing and future entitlements and clawed back all bonuses paid to her from April 2009 until March 2018. Kochhar called upon ICICI to restore the existing and future entitlements, but her ask was refused.
She then filed a writ petition in Bombay High Court in 2019 seeking to refrain ICICI from recovering and/or cancelling the benefits granted for early retirement and a declaration to exercise the benefits of stock options.
The high court rejected the petition, which was subsequently upheld by the Supreme Court.
After facing defeat before the apex court, Kochhar has now approached the high court with the present suit.
ICICI-Videocon Loan: Srikrishna Panel Finds Chanda Kochhar In Violation Of Bank’s Code Of Conduct
It is Kochhar's case that the entitlements and benefits that were unconditionally provided to her should be continued, even post her retirement.
The plea stated that the benefits granted to her unconditionally included employee stock options that were exercisable till 2028 and a tranche of such stock options was purportedly expiring April this year, which gave rise to the urgency in hearing.
She alleged that the bank later reneged from its contractual commitment flowing from its acceptance letter without any justification. Besides, she said that the bank could not have terminated a person who had already retired.
The high court will hear the matter next March 24.