Madhu Kapur's battle for seat on Yes Bank's board to be fought in Bombay High Court

MUMBAI: The Madhu Kapur battle for a seat on the bank's board will be fought on the Bombay High Court as the court threw out a petition challenging its jurisdiction to decide the case, and Kapur pleaded with market regulator to give out its opinion.

The court on Friday dismissed Yes Bank's petition that it did not have the jurisdiction to hear the plea by Madhu Kapur, widow of Yes Bank co-founder Ashok Kapur's, said a person advising one of the litigants, choosing anonymity.

Now, the Bombay High Court can hear and rule on the petition of Kapur who is demanding restoration of her rights to nominate a director to the bank's board as provided for in the memorandum and articles of association.

Neither the bank, nor Kapur were available for comments.

Kapur and Yes Bank are in a legal battle over whether she has a right to nominate a director. While Kapur maintains that being a legal heir, she inherits the rights associated with the shareholding, the lender has been saying that she does not. In fact, the bank had also turned down a proposal to have Shagun Gogia, daughter of Kapur, to the board citing that she does not qualify for the position.

Kapur, and Rana Kapoor, the managing director and co-founder of Yes Bank, are related through marriage. In act the Kapoor-led bank, has sought an informal opinion from the Sebi whether it could drop Kapur from being clubbed as part of the promoter group in regulatory filings. Although, the regulator has not provided any opinion, Kapur, through her lawyer Federal & Rashmikant, has requested it to not interfere in the matter when the court was hearing the case.

"Till the Sebi acquisition of shares and takeover rules were amended in 2009, it specifically provided that spouse is a promoter," said one of the lawyers representing Kapur. "In 2009, the definition has been amended to make it inclusive without specific reference to wife, or widow."