Chanda Kochhar was terminated as the ICICI Bank MD and CEO.
ICICI Bank has filed a recovery suit against the former Managing Director and CEO Chanda Kochhar in the Bombay High Court.
The suit was filed on January 10 and was listed under the category of monetary suits under the Code of Civil Procedure 1908. The bank is represented by law firm Veritas legal and is at pre admission stage.
Through this suit, ICICI Bank seeks to recover around Rs 12 crore that Chanda Kochhar received as part of bonus and other benefits before she was terminated from the bank. According to ICICI Bank, the bonus was disbursed between April 2006 and March 2018.
CHANDA KOCHHAR'S SUIT EARLIER
Chanda Kochhar had in November last year filed a suit against ICICI Bank in the Bombay High Court.
It was only during the hearing of that case that Kochhar's lawyer got to know about the counter-suit filed by ICICI Bank. It was mentioned in their affidavit which they had filed against Kochhar's suit.
Chanda Kochhar had moved the high court against ICICI Bank for terminating her employment after it accepted her request for early retirement.
The ICICI Bank has said in its reply that it is a private bank and hence it is administered by its board of directors and thus the suit filed by Kochhar is not maintainable.
ICICI Bank has also in its 28-page response said that Kochhar's termination was due to lack of disclosures. ICICI said that Kochhar showed a lack of diligence with respect to annual disclosures where various mandatory disclosures in relation to her were not made.
Speaking about the two cases, Kochhar's lawyer Sujay Kantawala, who is representing her in the suit filed against ICICI Bank said, "The two cases are very different and it is not exactly as the bank is making it to be. We will file our response to the affidavit filed by ICICI soon."
The next date of hearing of Kochhar's suit against the bank is next Monday.
A division bench of Justices RV More and SP Tavade on Monday directed Kochhar's advocate Sujay Kantawala to go through the affidavit. It posted the matter for further hearing on January 20.
Kochhar moved the HC on November 30, 2019 challenging "termination" of her employment by ICICI Bank, which also denied her remuneration for her alleged role in granting "out of turn loans worth Rs 3250 crore to Videocon Group which benefitted her husband Deepak Kochhar".
Kantawala argued that Kochhar's termination from her post came months after the bank approved her voluntary resignation on October 5, 2018 and therefore the bank's action is "illegal, untenable, and unsustainable in law".