The Supreme Court on Tuesday declined to consider a plea by former ICICI Bank CEO and Managing Director, Chanda Kochhar, against her termination last year.
A bench presided over by Justice S K Kaul said, "We are not inclined to interfere in the impugned order. This falls within the realm of private contract between bank and employee."
The Bombay High Court in March this year had dismissed her writ petition against termination letter issued by the ICICI Bank in February 2019 for alleged lapses in complying with disclosure norms on conflict of interests. The High Court had said the matter did not fall under writ jurisdiction.
Kochhar faced allegations of quid pro quo involving her husband Deepak Kochhar in relation to loans given to the Videocon group.
Kochhar, led by senior advocate Mukul Rohatgi, challenged the validity of the order of Bombay High Court that dismissed a petition filed by her against termination. The counsel said the termination was invalid for having been taken without the prior approval of the RBI, which was in breach of Section 35B(1) of the Banking Regulation Act. "RBI has no jurisdiction to grant ex facto approval. Thus my plea lies independent of ICICI as the distinction between a public and private bank is blurred due to funds they handle," he said.
The court, however, pointed out the RBI in its wisdom had given its approval.
"What happens to my reputation? I almost worked for 30 years in the bank," he said on behalf of Kochchar.
"You decided to go out on your own but now you are saying they are terminating you. The bank is not sacking you. You decided to go out on your own," the bench said.
The counsel maintained that her resignation can't be converted into a termination but the court dismissed the plea.
(Published 01 December 2020, 07:52 IST)
JOIN US