HC asks Yes Bank promoters to settle dispute amicably by June 2
In the two-year-old suit filed by Madhu Kapur against Yes Bank, the Bombay High Court on Wednesday asked both the sides to settle their dispute amicably by June 2 with regard to the right to nominate directors on the Bank's board.business Updated: May 13, 2015 12:58 IST
In the two-year-old suit filed by Madhu Kapur against Yes Bank, the Bombay High Court on Wednesday asked both the sides to settle their dispute amicably by June 2 with regard to the right to nominate directors on the bank's board.
After the hearing on Wednesday, justice Gautam Patel said, "Both the parties are in talks.... I am deferring the proceedings in the case till June 2 so as to enable both the sides to arrive at an amicable solution".
Madhu Kapur is the widow of Ashok Kapoor, co-founder of Yes Bank, who lost his life in the 27/11 Mumbai terror attacks. She holds shares in the bank to the tune of 10.29 per cent jointly with her children and is seeking nomination of her daughter Shagun Kapur Gogia on the Bank's board as a director.
She has also contended that she has a right to nominate directors on the board of the bank.
The private sector lender has argued that appointment of directors by the bank's board cannot be questioned in a court of law.
Kapur had filed a suit in 2013 against the Bank and Rana Kapoor, its Managing Director and Chief Executive Officer, over her right of nominating directors. She contended that the Bank had rejected her claim to nominate directors on the ground that her late husband's rights are not automatically transferred to her.
The court had recently suggested to both the sides to reduce their stakes to less than ten per cent in the bank to resolve the dispute over the right of nomination of directors.
If they reduce their stakes to 10%, then none of them can nominate directors on the bank's board.
Yes Bank was founded by late Ashok Kapur and Rana Kapoor who is married to Madhu's sister Bindu.