The Bombay High Court adjourned the hearing of Yes Bank promoter case to June 19. The case will be taken up after the summer break of the court.
The case relating to Yes Bank promoters Madhu Kapur and the bank’s current CEO and Managing Director, Rana Kapoor, went legal in June last year. Madhu Kapur filed a case against Rana Kapoor claiming the right to nominate directors to the bank’s board.
The mid-sized private bank has rejected her claims that as a successor, Madhu Kapur cannot inherit the rights under Articles of Association or the status of promoter of the bank, thereby ruling out the possibility of an amicable settlement out of court.
It had also challenged court’s earlier decision that dismissed its objection 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.
Earlier this week, a two-judge bench had reserved its judgment whether the matter can be heard or not by the court.
The matter came up for hearing of notice of motion before Justice Roshan Dalvi, who adjourned the hearing to June 19, 2014 on account of court vacation beginning May 9, 2014. The counsels of the bank requested if the matter can be heard on Monday but was denied by the judge, who preferred to hear the two-judge bench order before beginning the hearing of the two parties.
Yes Bank is due to hold its Annual General meeting in May or June, in which it could pass resolutions and discuss the disputed matter.
Madhu Kapur's plea
Madhu is the widow of the bank’s co-promoter Ashok Kapur and sister of Rana Kapoor’s wife. The case was first filed against the bank by Madhu Kapur, along with daughter Shagun Kapur Gogia and son Gaurav Kapur, in June last year.
In the same month, Shagun was also nominated by Madhu Kapur to be on the board, as directed by the HC, and was rejected by the bank’s board on the grounds that she did not meet the “fit and proper” guidelines required by the Reserve Bank of India.
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 mid-sized bank.