YES Bank case: Madhu Kapur’s counsel may file affidavit next week

In the legal battle over the right of the promoters’ family to be consulted on the appointment of directors on YES Bank’s board, Madhu Kapur’s counsel is likely to file amendments to their original suit before the court on Monday, said an associate close to her.

The case was earlier scheduled to be heard on July 5 in the Bombay High Court. However, this hearing did not take place. It is likely to be heard next week.

“We did not see the case on board list of the court. Hence, we will submit our amendments, most likely, on Monday or when the court would decide on the hearing,” the associate said.

The court, in its hearing on July 1, had directed the counsel of Madhu Kapur to file their amendments by July 4.

Madhu Kapur, widow of YES Bank co-promoter Ashok Kapur, had moved the Court in early June, saying that her family has been denied its right to be consulted on the appointment of three directors — Ravish Chopra, Diwan Arun Nanda and M.R. Srinivasan — on the bank’s board “as provided for in the bank’s Articles of Association”.

However, in its affidavit on July 1, YES Bank informed the Court that the right to recommend directors is limited to the two founding members — Rana Kapoor and Ashok Kapur. It further stated that the right given to the successors to appoint directors might lead to disagreements among them over the nomination of directors.

In its board meeting on June 27, the bank had rejected the nomination of Shagun Gogia, daughter of Ashok Kapur, as an independent director. The Court had asked the bank to consider her nomination as a director on the board.

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