Supreme Court dismisses plea by Chanda Kochhar for interim release of retiral benefits

The Supreme Court on Friday dismissed a plea by former ICICI Bank Chief Executive Officer Chanda Kochhar seeking the release of her retiral benefits by the private bank [Chanda Kochhar vs ICICI Bank Limited]. .A bench of Justices Sanjiv Khanna and SVN Bhatti stated that it would not interfere with the Bombay High Court order refusing her interim relief in this regard..The top court was hearing an appeal against a May 3 Bombay High Court order that had refused interim relief to Kochhar in a suit filed by her against the bank for post-retirement benefits.The High Court had held deduced that if the Kochhar succeeds 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.ICICI had purportedly received a complaint against Kochhar in 2018, after which it constituted an enquiry committee headed by retired Supreme Court judge Justice BN Srikrishna to probe into the allegations.In June 2018, Kochhar informed ICICI that she would go on leave till the enquiry is completed. By a letter dated October 3, 2018, she 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 of Kochhar.Kochhar then filed a suit seeking specific performance of her entitlements and benefits that were unconditionally provided to her when the bank accepted her early retirement in 2018.She stated 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.However, the bank later reneged from its contractual commitment flowing from its acceptance letter without any justification, she added.The bank had sought an order directing Kochhar to stay her hands on the stocks till her suit is disposed of..Chanda Kochhar did not approach court with clean hands: Bombay High Court in suit against ICICI bank .Senior Advocate Harish Salve appeared for Kochhar before the top court today.He argued that no prima facie case has been found against Kochhar in the suit filed by ICICI bank. Further, after allowing retirement, the bank could not have rescinded the same in violation of contractual obligations.The bench, however, proceeded to dismiss the appeal.