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.
