Order passed in YES Bank case, but not made public

Judge has asked two parties to go in for a further round of mediation based on order

After two years, the Bombay High Court passed an order in the YES Bank and Madhu Kapur case on Thursday. However, the order is yet to be made public. The judge has asked the two parties to go in for a further round of mediation. Both parties will receive a copy of the order and the round of mediations will be based on it. The next hearing is scheduled for June 17.

In 2013, the dispute between the promoters of YES Bank over board-level appointments had come to light ahead of the bank’s annual general meeting (AGM). The judgment was passed two days ahead of the AGM scheduled on Saturday.

Kapur’s husband, Ashok Kapur had co-founded YES Bank with his brother-in-law Rana Kapoor. Madhu Kapur and Rana Kapoor’s wife Bindu are sisters.

Kapur, the second-largest shareholder, had moved court claiming her right as the bank’s co-promoter was violated and she wasn’t consulted before the bank had appointed a few directors on its board. Kapur’s daughter, Shagun Kapur Gogia, had also applied to join the bank’s board in June 2013, but the board rejected her nomination on the basis that she lacked sufficient experience.

Meanwhile, Kapur will be moving court on Friday against Kapoor’s reappointment as the managing director and chief executive officer of the bank, which will come into effect from September 1, for a period of three years. This will be done on the ground that it is not a joint nomination.

Both parties declined to comment.

Kapur will also challenge the re-appointment of two directors — M R Srinivasan (non-executive director) and Diwan Arun Nanda (independent director) — which are coming up for approval at the AGM on Saturday. Their re-appointment is being challenged on the ground that according to norms, independent/non-executive directors at private sector banks have to be between 35-70 years of age. Both have crossed the age limit. Earlier, the bank had sought the Reserve Bank of India’s approval for the same and the regulator had allowed both of them to be a part of the board till October 2016.