Chanda Kochhar moves Bombay High Court against former employer ICICI Bank for retiral dues, benefits

Former chief executive officer (CEO) of ICICI Bank, Chanda Kochhar has moved the Bombay High Court 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 [Chanda Kochhar v. ICICI Bank Ltd.]..In the suit filed against the bank, Kochhar sought 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.In any event, the Bank could not have terminated a person who had already retired, the suit stated.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.When the interim application was taken up for hearing on Thursday, Justice AK Menon granted ICICI two weeks time to respond to the application..FactsICICI purportedly received a complaint against Kochhar. In a meeting in May 2018, the bank constituted an enquiry committee headed by retired judge of the Supreme Court of India, Justice BN Srikrishna.In June 2018, Kochhar informed ICICI that she would go on leave till the enquiry is completed. By a letter dated October 3, 2018, the petitioner sought an early retirement which was accepted by ICICI subject to certain conditions.In January 2019, the enquiry committee report was submitted which indicted Kochhar. After this, the Board treated the separation as ‘Termination for Cause’.ICICI also revoked the retirement benefits to Kochhar. Kochhar called upon ICICI to restore the existing and future entitlements, including unpaid amounts, stock option and medical benefits which was refused by ICICI.Kochhar filed a writ petition in High Court in 2019 seeking to refrain ICICI from recovering and/or cancelling the benefits granted for early retirement and a declaration to exercise the benefits of stock options.The High Court rejected the petition on the ground of maintainability holding that the termination fell under the ambit of a contractual relationship and that her service conditions were not governed under any statute and hence a writ remedy cannot be availed.This order of the High Court was upheld by the Supreme Court who refused to intervene in the findings.After this, Kochhar approached the High Court with the present suit..Senior Advocate Aspi Chinoy with Rohan Dakshini from Rashmikant Partners appeared for Kochhar, while Senior Advocate Darius Khambata instructed by Veritas Legal appeared for ICICI Bank.