Bombay HC refuses to grant stay on Yes Bank AGM tomorrow

MUMBAI: Observing that there was no case made out for an urgent relief, the Bombay High Court today refused to grant a stay sought by the widow of an ex-director on the Annual General Meeting (AGM) of Yes Bank scheduled to be held here tomorrow.

Justice A R Joshi was hearing a petition filed by one Madhu Ashok Kapur and her two children seeking a stay on the AGM and election of three additional directors to the post of directors.

The plaintiffs are the widow and two children of Ashok Kapur who was a director in Yes Bank. According to the plaintiffs, they should have been consulted before appointment of anyone to the post of director in the bank.

The bank in its AGM tomorrow is likely to vote for the selection of three directors.

The main grievance of the plaintiffs is that they have not been consulted by Rana Kapoor, another director and brother-in-law of deceased Ashok Kapur.

Senior counsel Birendra Saraf, appearing for the plaintiffs, argued the three, soon to be elected directors were recommended by Rana Kapoor without concurrence of the present plaintiffs.

According to the plaintiffs, the notice of the said AGM was issued on them on May 15, 2013 and prior to that they were not aware of nominations of the three persons for the post of directors by Rana Kapoor.

However, the bank opposed the petition and said the plaintiffs were informed about the three persons to be elected as directors in September 2012 when their appointment as additional directors was notified to the stock exchange.

After hearing the argument, the high court said no urgency was made out by the plaintiff to grant interim stay.

"Considering the on-going process of the holding of the AGM which is scheduled to be held tomorrow June 8, 2013 and probable election, at this stage no ad-interim relief is granted in favour of the plaintiffs," Justice Joshi said.

The court, however, clarified the appointments of the directors in the AGM shall be subject to final orders of the court when the petition is taken up for final hearing.

The matter has been kept for hearing next week.