The Supreme Court (SC) on Tuesday dismissed Chanda Kochhar's appeal against her termination as ICICI Bank's chief executive officer (CEO) and managing director (MD).
The Bombay High Court earlier this year had rejected Kochhar's plea following which she approached the top court seeking remedy against her sacking when the bank's board had already approved her early retirement request.
The SC was hearing Kochhar's appeal against the March 5 order of the high court, which had dismissed the plea against the termination of her services as managing director and CEO of ICICI Bank while noting that the dispute arises from a contract of personal service.
The top court observed that the ICICI Bank terminated Kochhar only after she resigned, adding that the Reserve Bank of India gave approval to her termination as per its wisdom.
It further stated that it is not "inclined to interfere" with the order of termination as it falls within the realm of the contractual relationship between the bank and employee.
Kochhar was terminated last year, months after she resigned from her post. Former Attorney General Mukul Rohatgi, who represented Kochhar, argued that she can't be sacked without prior approval.
The Enforcement Directorate (ED) had filed a criminal case under the PMLA (Prevention of Money Laundering Act) last year against Kochhar, her husband Deepak Kochhar, and Venugopal Dhoot of Videocon Group to probe alleged irregularities in sanctioning Rs 1,875 crore in loans by ICICI Bank.