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The Bombay High Court has adjourned the hearing on the case between Madhu Kapur and YES Bank until June 19, 2014. The case will come up for hearing only after the court resumes work after its summer break.
Earlier this week, the Bombay High Court had reserved its order on the jurisdiction issue. Madhu, widow of YES Bank co-founder Ashok Kapur, had claimed that her right as co-promoter of the bank was violated as she was not consulted before appointing directors on the private bank's board.
YES Bank had made a preliminary objection that as per Section 10A (6) of the Banking Regulation Act, 1949 dispute over appointment of directors on a bank's board cannot be heard by a civil court.
The court had initially ruled that it has jurisdiction to hear Madhu's plea prompting YES Bank to appeal against the order.
The possibility of an out-of-court settlement appears dim following the bank's board maintaining its stance of not considering Madhu as a co-promoter of YES Bank. Ashok Kapur had co-founded YES Bank with his brother-in-law Rana Kapoor. Madhu and Rana's wife Bindu are sisters.
But YES Bank has so far maintained a stand that banking is not a family business and 'financial family successors' do not automatically become part of the promoter group of a bank due to regulatory criteria.
