Case Note & Summary
The petitioner, Chanda Deepak Kochhar, was the Managing Director and CEO of ICICI Bank. She joined the bank in 1984 and held various positions until her termination in 2019. Complaints were received against her, and the bank constituted an enquiry by a retired Supreme Court judge. The petitioner went on leave and later sought early retirement, which was accepted subject to conditions. The enquiry report was adverse, and the board treated her separation as termination for cause. The RBI communicated its approval. The petitioner challenged the termination and the RBI communication. The court held that the termination was valid based on the enquiry report and contractual terms, and the RBI communication was not a quasi-judicial order. The petition was dismissed.
Headnote
A) Service Law - Termination for Cause - Validity of Termination - ICICI Bank terminated the petitioner as Managing Director based on an adverse enquiry report by a retired Supreme Court judge. The court held that the termination was in accordance with the terms of appointment and the enquiry was fair. (Paras 1-10) B) Banking Regulation - RBI Approval - Communication of Approval - The RBI communicated its approval to the termination. The court held that such communication is not a quasi-judicial order and is not subject to challenge in writ jurisdiction. (Paras 11-15) C) Contractual Employment - Writ Jurisdiction - Scope of Judicial Review - The court held that in matters of contractual employment, writ jurisdiction is limited and cannot be used to challenge termination based on contractual terms unless there is a statutory violation. (Paras 16-20)
Issue of Consideration
Whether the termination of the petitioner as Managing Director of ICICI Bank was valid and whether the communication of approval by RBI was subject to challenge.
Final Decision
The petition is dismissed. The termination of the petitioner and the RBI communication are upheld.
Law Points
- Termination for cause
- Service contract
- Enquiry report
- RBI approval
- Writ jurisdiction
- Contractual employment
- Natural justice
