Bombay HC allows Chanda Kochhar to amend the statement against its termination
MUMBAI: The Bombay High Court allowed Monday Chanch Kochhar , former managing director and CEO of ICICI Bank to amend his request that defies its termination and now also questions his approval granted by the Reserve Bank of India (RBI) in March 2019.
But a bank of judges Ranjit More and MS Karnik also made it clear that he has kept the bank's preliminary objections open to the ability to maintain his request.
Darius Khambata's lawyer for the bank said it was a contractual dispute and that the bank was a private bank and not a corporation, a court order request could not be maintained.
Vikram Nankani's lawyer for Kochhar, who was not in court but her husband, argued that according to banking regulations the termination required RBI approval. He said the bank's affidavit in response to the petition revealed that RBI had given its approval, but post facto, in March, after the end of January 30.
Nankani, who along with Sujay Kantawala appeared for Kochhar, tried to amend the petition to now add RBI as part and challenge his assent.
Khambata said that such an amendment cannot be allowed. He cannot argue that modifying and adding RBI what was not maintainable suddenly becomes maintainable, Khambata said.
The bank allowed the amendment, but said it would also listen to the bank about maintainability.
Last week, Kochhar approached the Bombay high court to challenge the validity of the Bank's letter of termination. She has requested a statement to keep her letter last October valid by which the Bank had already accepted her request for early retirement.
Last October, ICICI Bank accepted its declaration of early retirement on October 3 and, after accepting its resignation, appointed Sandeep Bakshi as managing director and CEO for a period of five years.
However, on January 30, the bank rescinded it ‘for cause, in view of a pending investigation. '
The Bank also canceled all of its benefits, including those from 2008 to 2019. The amount of the benefit is estimated to be significantly high.
Your case now is that once your early retirement was accepted by the bank, you cannot cancel and withhold your benefits.
In its response, the bank said she attempted to invoke the judicial jurisdiction of HC under the garment of an alleged violation of section 35 (b) of the Banking Regulations Act and denied that there was such a violation or breach.
The bank said that on February 3 it requested the approval of the RBI for termination and it was granted on March 13.
The HC published the matter for its hearing next Monday.