Bombay High Court division bench refuses interim relief to Chanda Kochhar in plea against ICICI Bank for post retiral benefits

A division bench of Bombay High Court Wednesday upheld an order of the single-judge who had refused interim relief to former chief executive officer (CEO) of ICICI Bank, Chanda Kochhar in a suit filed by her against the bank for post retirement benefits..A division bench of Justices KR Shriram and Rajesh Patil pronounced the verdict upholding the order of single-judge Justice RI Chagla who had stated that Kochhar's termination was valid.The division bench concluded that Justice Chagla had exercised his discretion reasonably and in a judicial manner."The single judge has exercised his discretion reasonably and in a judicial manner. The observations made on the conduct of Kochhar though not conclusive, are very serious in nature. If the interim reliefs sought by her are granted, that would cause irreparable injury and prejudice to respondent bank. The balance of convenience is completely in favour of respondent, since it is a public listed company" the judge said. The Court also held deduced that if the Kochhar succeeded in her suit, then ICICI bank could be directed at that stage to purchase shares from the stock market or pay any amount equal to that value to Kochhar."In our view, no interference is called for. Both appeals are required to be dismissed and are hereby dismissed" the bench held..Kochhar's suit before the single-judge was filed seeking specific performance of her entitlements and benefits that were unconditionally provided to her when the bank accepted her early retirement in 2018.Kochhar stated in her suit that the bank was fully aware of the terms of reference and scope of enquiry when entering into a contract with Kochhar which granted her certain benefits unconditionally.She claimed that the bank later reneged from its contractual commitment flowing from its acceptance letter without any justification.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.The bank on the other hand, sought an order directing Kochhar to stay her hands on the stocks till her suit is finally heard..Justice Chagla had refused to pass any interim order in the suit seeking specific performance of her former employer’s contractual obligations towards benefits due to her since her early retirement from the bank on October 4, 2018.While Kochhar's interim relief was rejected, the single-judge had allowed prayer made by the bank for interim relief.He had directed Kochhar not to deal with the 69,0000 shares, that Kochhar claimed were allotted to her. If she has dealt with any shares then she must disclose the same on affidavit, Justice Chagla had said..Chanda Kochhar did not approach court with clean hands: Bombay High Court in suit against ICICI bank .This was challenged by Kochhar before the division bench. After multiple hearings at length, the division bench pronounced the order today.The division bench noticed that Kochhar had approached the High Court just two days before expiry of three year limitation period from the date of cause of action."The delay in approaching the Court would itself disentitle respondent from seeking any interim relief as prayed for" the bench held. The division bench also held that Kochhar was seeking specific performance at the interim stage which could not be granted..Senior Advocate Aspi Chinoy with Advocates Rohaan Cama, Rohan Dakshini, Vishesh Malviya, Deepa Shetty, Kyrus Modi and Pranav Narsaria brief by Rashmikant and Partners appeared for Kochhar.Senior Advocates Darius Khambata and Mustafa Doctor with Advocates Aditya Mehta, Ali Antulay, Abhijit Joshi, Rahul Dwarkadas, Silpa Nair, Juhi Bahirwani and Sanaya Contractor briefed by Veritas Legal appeared for ICICI Bank..[Read order]