Chanda Kochhar should pay back bonuses: ICICI Bank to High Court
Mumbai, Jan 13: The ICICI bank has approached the Bombay High Court seeking effect to "termination of appointment" of Chanda Kochhar as its Managing Director and CEO, and also sought recovery of various amounts from her.
In a monetary suit filed on January 10, the bank sought dismissal of Kochhar's petition and stated that the issue can be decided in a commercial suit.
"ICICI has filed a suit seeking recovery of amounts towards the claw back of bonuses given to the petitioner (Kochhar) from April 2006 to March 2018 pursuant to the termination of the petitioner's services," the bank said in its affidavit.
A clawback is a provision in which incentive-based pay, like a bonus, is taken back from an employee by an employer following misconduct or declining profits.
The affidavit was submitted in response to a petition filed by Kochhar challenging her sacking, months after she voluntarily left the second largest private sector lender.
"On December 8, 2016, Kochhar executed a claw back 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 a determination of a gross negligence or an integrity breach by Kochhar.
"The petitioner's conduct has caused substantial embarrassment to the bank and all the stake-holders, and has led to irreparable reputational loss to the bank," it stated.
The bank further stated that Kochhar flagrantly violated the ICICI Group Code of Business Conduct and Ethics.
"The petitioner (Kochhar) deliberately committed violation with a malafide intent to obtain illegal benefits," it stated.
The affidavit further said that Kochhar's petition challenging her sacking by the bank claiming violation of RBI rules is an "malafide attempt" to secure valuable stock options of the bank.
A division bench of Justices R V More and S P Tavade on Monday directed Kochhar's advocate Sujoy Kantawalla 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".
Kantawalla 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".
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Ordinance issued to increase number of Supreme Court judges from 34 to 38
New Delhi (PTI): The government has promulgated an ordinance to increase the strength of the Supreme Court from the present 34 judges to 38, including the Chief Justice of India.
The law ministry notified the ordinance on Saturday, which amended the Supreme Court (Number of Judges) Act, 1956, to increase the sanctioned strength of the top court.
So far, the sanctioned strength of the top court was 34, including the Chief Justice of India (CJI). Now, the number of judges has been increased by four, taking the sanctioned strength to 38.
The top court will now have 37 judges, other than the CJI.
With the apex court having two vacancies at present, and the ordinance coming into force immediately, the Supreme Court Collegium will now have to recommend six names for appointment as judges in the top court.
A bill will be brought in the Monsoon Session of Parliament to convert the ordinance – an executive order – into a law passed by Parliament.
The Union Cabinet had cleared a draft bill on May 5 to increase the number of apex court judges.
The strength of the Supreme Court was last increased from 30 to 33 (excluding the CJI) in 2019.
The Supreme Court (Number of Judges) Act, as originally enacted in 1956, put the maximum number of judges (excluding the CJI) at 10.
This number was increased to 13 by the Supreme Court (Number of Judges), Amendment Act, 1960, and to 17 by another amendment to the law.
The Supreme Court (Number of Judges) Amendment Act, 1986, augmented the strength of judges from 17 to 25, excluding the CJI.
A fresh amendment in 2009 further increased the strength from 25 to 30.
Article 124(3) of the Constitution lists the qualifications required to become a Supreme Court judge.
An Indian citizen who has either served as a high court judge for at least five years, or as an advocate for 10 years, or is a distinguished jurist, can be appointed to the top court.
The strength of the Supreme Court is increased based on the recommendations of the CJI, who writes to the Union law minister. After consulting the finance ministry, the Department of Justice under the law ministry moves the Cabinet with a draft bill.
