In a setback to Yes bank, the Bombay High Court on Friday ruled that it has the jurisdiction to hear the Madhu Kapur’s plea on right to nominate directors on the bank’s board. The case will now be heard on June 19 after the court’s summer vacation.
Last month too, the court had ruled that it had the jurisdiction to hear Kapur’s plea. However, the bank had challenged this decision that as per Section 10A (6) of the Banking Regulation Act, 1949 the dispute over appointment of directors on a bank’s board cannot be heard by any civil court.
Madhu Kapur, widow of co-founder and promoter Ashok Kapur, had taken Yes Bank and its current CEO and MD Rana Kapoor to court in June last year, after the bank rejected her claims. Madhu Kapur and Rana Kapoor’s wife are sisters.
In the same month, Madhu Kapur had also nominated Gogia to be a member of the bank’s board, as directed by the court, but was rejected by the board citing insufficient experience and not meeting the RBI’s “fit and proper” requirement to be a board member.
Last month, the mid-size private sector bank rejected Kapur’s claims to inherit the rights under Articles of Association denying the status of promoter of the bank, thereby also ruling out the possibility of an amicable settlement out of court.
At present, Madhu Kapur holds 11.91 per cent stake, while Rana Kapoor, directly and through other family-owned ventures, holds 13.64 per cent stake in the bank.