Yes Bank case: HC to decide jurisdiction issue first

The Bombay High Court today said it would first decide whether it has the jurisdiction to hear the suit filed by Madhu Kapur, the widow of Yes Bank co-founder Ashok Kapur, challenging appointment of directors nominated by the current Managing Director Rana Kapoor.
The lawyer of Rana Kapoor, co-founder of the bank (who is married to Madhu's sister), has said that High Court has no jurisdiction to hear matters about appointment of directors.
Justice S J Kathawala today said he would have to decide this issue first.
Yes Bank, as a banking company, is governed by Banking Regulation Act which provides that election of a director cannot be challenged before a civil court, Rana's lawyer Soli Cooper said. Such matters concern internal management, and a civil court does not have a jurisdiction if majority of shareholders have already decided them, he added.

At the past three hearings, court was hearing the arguments of Madhu Kapur's lawyer, who has sought a direction from the court to the bank to consider nomination of her daughter, Shagun Gogia, as a director. The suit challenges decision of Yes Bank's board to reject Shagun's nomination.
In another development, Madhu Kapur's lawyer Darius Khambata alleged in the court today that Yes Bank had written a letter to RBI, seeking to de-classify the Madhu Kapur group as promoters. He demanded a copy of this letter, saying that Yes Bank was not disclosing this letter as well as various other documents.