Bombay High Court dismisses Chanda Kochhar’s plea against termination of employment

Bombay High Court dismisses Chanda Kochhar’s plea against termination of employment thumbnail
The Bombay High Court on Thursday dismissed a petition filed by Chanda Kochhar against her termination as managing director and CEO of the ICICI Bank, noting the dispute arises from a contract of personal service. Chanda Kochhar was terminated as the ICICI Bank MD and CEO. (File Photo)Bombay High Court has dismissed the petition filed…

The Bombay High Court on Thursday dismissed a petition filed by Chanda Kochhar against her termination as managing director and CEO of the ICICI Bank, noting the dispute arises from a contract of personal service. Chanda Kochhar was terminated as the ICICI Bank MD and CEO. (File Photo)Bombay High Court has dismissed the petition filed by former ICICI bank chief Chanda Kochhar against her employer for terminating her. Chanda Kochhar was Managing Director of the ICICI Bank and was terminated from the service last year. The Reserve Bank India (RBI) had communicated its approval on the termination.Chanda Kochhar had challenged the termination order as well as the communication issued by the Reserve Bank of India.According to the ICICI Bank, complaints were received against Kochhar and so in its meeting held on May 29, 2018, the bank constituted an enquiry by a retired judge of the Supreme Court. In June 2018, Kochhar informed ICICI that she would go on leave till the inquiry is completed. Also by a letter dated October 3, 2018, Kochhar sought early retirement. ICICI accepted her request for early retirement, subject to certain conditions.On January 27, 2019, the report of the inquiry was submitted. The findings given in the report were against Kochhar. And thus, in the meeting held on January 30, 2019, the board of the ICICI treated the separation of Kochhar’s service as a Termination for Cause. Further on February 1, 2019, ICICI revoked Kochhar’s retirement benefits.Advocates Darius Khambata Mustafa Doctor for ICICI and advocate Venkatesh Dhond for the RBI objected to the very maintainability of the petition filed by Kochhar.The division bench of Bombay High Court, Justice Nitin Jamdar and Justice M S Karnik agreed with the contentions of the bank and said, “ICICI is a private body. It is not an instrumentality of the state. It receives no public funding. Service conditions of the petitioner (Kochhar) are not governed by any statute. The dispute raised in this petition arises from a contract of personal service. The termination of the petitioner is in the realm of a contractual relationship.”With this, the court in its 17-page order said, “For the contractual remedies, the petitioner will have to approach the appropriate forum and not writ jurisdiction.”Get real-time alerts and all the news on your phone with the all-new India Today app. Download from
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