One of the biggest banks of India ICICI has moved to Bombay High Court and filed monetary suit in order to recover bonuses from former CEO and MD Chanda Kochhar. The case came into limelight after former CEO was found violating business conduct and ethics as well as failing to disclose conflict of interest on the basis of which she was terminated from her post.
The suit clearly states: “ICICI has filed a suit seeking recovery of amounts towards the clawback of bonuses given to petitioner (Kochhar) from April 2006 to March 2018 pursuant to the termination of petitioner’s services. I say that the question regarding the validity of petitioner’s service is terminated for cause is an issue that will arise in the Commercial suit and therefore, a petitioner ought not to raise the same issue in the writ petition.”
“…On December 8, 2016, Kochhar had executed a clawback agreement with the bank pursuant to which ICICI is entitled to a return of the previously paid variable pay or deferred variable pay from the petitioner in the event of the determination of gross negligence or integrity breached by Kochhar.”
The bank also replied to the writ that was filed by Chanda Kochhar against her termination against which bank filed an affidavit before the division bench of Bombay High Court consisting of Ranjit More and SP Tavade in which it explained that she was found breaking the professional ethics and business code of conduct.
The court has allotted one week time to Chanda Kochhar to respond back to the affidavit. The Court also asked the banking regulators whether the termination of Chanda Kochhar was according to banking regulation or not against which RBI has also submitted report of Justice Sri Krishna which states that her termination is as per the law.