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The Bombay High Court (HC) on Monday ruled that it will hear the plea of Madhu Kapur in a case involving her right to nominate directors on Yes Bank Ltd’s board as a co-promoter of the bank.
The HC ruling overturned the private bank’s contention against Kapur that her plea is not maintainable and should be dismissed.
“The Honourable Bombay High Court holds that bar under Section 10A (6) of the Banking Regulation Act, 1949 is not applicable and will hear the case in detail. Yes Bank awaits full text of the said order,” Yes Bank said in a statement.
In June 2013, Madhu Kapur, along with daughter Gogia and son Gaurav Kapur, filed a petition in the Bombay HC against the bank, seeking the right to nominate directors on the bank’s board.
Kapur had also filed a plea opposing the appointment of three directors (Arun Diwan Nanda, MR Srinivasan and Ravish Chopra) nominated by Rana Kapoor, the current CEO and MD of the bank.
Kapur is the widow of Ashok Kapur, one of the promoters of Yes Bank. Rana Kapoor is the other promoter of the bank.
Rana Kapoor’s wife Bindu Kapoor and Madhu Kapur are sisters. After the death of Ashok Kapur in the 26/11 terrorist attack, Madhu Kapur’s daughter Shagun Kapur Gogia had been denied a seat on the board by the Bank.
Yes Bank has refused a board seat to Gogia, citing that she does not have enough experience to be a board member.
Madhu Kapur holds 12 per cent stake in the bank while Rana Kapoor, directly and through other family-owned firms, holds a 13.72 per cent stake.
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