SC rejects Chanda Kochhar's plea against termination as CEO from ICICI Bank

The Supreme Court rejected the appeal filed by Chanda Kochhar against the Bombay High Court order which had dismissed her plea against being removed as the managing director and CEO of ICICI Bank

The Supreme Court Tuesday rejected Chanda Kochhar’s appeal against the Bombay High Court (HC) order which had dismissed her plea against her termination as the managing director and CEO of ICICI Bank, saying the issue falls within the realm of a private bank and employee. “Sorry, we are not inclined to interfere with the HC order,” a Bench headed by Justice Sanjay Kishan Kaul said, adding, “This fall within the realm of private bank and employee.”

The top court was hearing Kochhar's appeal against the March 5 order of the HC which had dismissed her plea against termination as MD and CEO of ICICI Bank, while noting that the dispute arises from a contract of personal service.

The HC had accepted the bank’s contention that Kochhar’s plea was not maintainable as the dispute was contractual and concerns a private body.

During the arguments before the apex court, senior advocate Mukul Rohatgi, appearing for Kochhar, said the HC had dismissed her plea on the grounds of maintainability. “I (Kochhar) was the MD of ICICI bank but bank recalled my earlier resignation and converted it into termination,” he said, adding, “This was wrong as it was against the norms”.

Rohatgi said that Kochhar’s resignation was changed into termination and there was no prior approval.

“The RBI was under obligation. You cannot convert resignation into termination. There is no question of termination as there was no previous approval as per the clause,” he said.

The bench observed, “As far as we understand, it is the RBI who can raise issue with the bank. You were in service with a private bank. The RBI has to deal with the bank saying that no approval was taken.” Rohatgi said for certain class of employees, prior approval is needed.

“You show us a judgement which says that you have a role, then your writ petition will be maintainable,” the bench told Rohatgi.

After Rohatgi referred to some judgements, the Bench said, “The RBI has given post-facto approval. You are saying there was no prior approval. You are saying that it is not the proper manner. Your whole grievance is against the private bank. There cannot be grievance with the RBI.” To this, Rohatgi said, “No. My whole grievance is against the RBI”.

He said if the RBI had not granted approval then Kochhar's termination would have been nullified.

“What about my (Kochhar's) reputation,” Rohatgi argued.

The Bench observed, “You can claim damages if your reputation is tarnished and if it was wrong.” Rohatgi said, “everything cannot be damages” and the RBI can be asked to explain its approval as RBI has no jurisdiction to give post-facto approval.

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

The former banker had moved the Bombay HC on November 30, 2019, challenging the "termination" of her employment by the ICICI Bank.