The Mumbai Bench of the National Company Law Tribunal (NCLT) refused to grant any stay on a petition filed by a group of shareholders seeking to restrain YES Bank from voting in the AGM.
In their oral order, members Suchitra Kanuparthi and Anuradha Bhatia said the Bench is “not inclined to stay” the AGM.
The petition was filed by the Authorised Representative of Shareholders of Dish TV, Trilok Chand Jindal, to restrain YES Bank from voting, particularly on the resolution to re-appoint certain board members.
The NCLT Bench heard it on Friday. It adjourned the case to January 4.
Court’s caveat
Simultaneously, the Mumbai High Court also rejected the Dish TV promoters’ ad interim request, and allowed YES Bank to vote at the AGM.
The High Court order, however, comes with the caveat that the result of the AGM will be subject to the outcome of the final hearing, set for February 3.
YES Bank is the largest shareholder in Dish TV with a 24.78 per cent stake as on September 30, 2021 and has sought to remove the board, including Managing Director Jawahar Goel.
The promoters of Dish TV have 5.93 per cent shareholding in the company.
Battle on two fronts
Dish TV has been fighting a battle on two legal fronts, at the NCLT and the Bombay High Court, seeking to restrain YES Bank from voting in the AGM.
World Crest Advisors LLP (a Dish TV promoter entity) filed a suit against YES Bank and Catalyst Trusteeship Limited in the Bombay High Court on December 18, arguing that it is the owner of the shares of the company presently held by YES Bank.
Roots of the conflict
The conflict between the lender and Dish TV started in September this year when YES Bank called for the removal of the board of the direct-to-home TV service provider on the grounds that it is acting at the behest of promoters, who hold just six per cent in the company.
Dish TV then postponed the AGM, scheduled in September, to December. It rejected YES Bank’s request for an EGM. A notice was also filed against the bank by the Uttar Pradesh Police to prevent the lender from voting in the AGM.
The Supreme Court rejected the UP police notice, restoring the private bank’s voting rights.
Dish TV scrip closed 4.89 per cent higher at ₹18.25 apiece on BSE on Friday.