YES Bank challenges single bench order of Bombay High Court in division bench

MUMBAI: India’s fifth largest private lender, YES Bank, Monday challenged the single bench order of the Bombay High Court that ruled Madhu Kapur, co-founder of the bank has the right to nominate jointly with co-founder Rana Kapoor

Court had posted the matter to be heard in August after the bank approached the court seeking relief. Until the stay on the single bench order will contiunue.

Last month, on June 17, The Bombay High Court has ruled that Madhu Kapur, the widow of Yes Bank’s co-founder Ashok Kapur and the legal heir, has the right to jointly nominate directors to the board of directors of the Bank that her late husband founded along with Rana Kapoor.

The court had ruled last year’s appointment of three whole time directors, Rajat Monga, Sanjay Palve and Pralay Mondal, is invalid as it was not done according to provisions of the agreement between the promoters.

Mumbai-based litigation firm Federal & Rashmikant is representing Madhu Kapur, while the Bank and Rana Kapoor are being represented by Cyril Amarchand Mangaldas in the case.

On the day of the hearing, YES Bank stock closed flat 0.67 per cent down to Rs 819, whereas the BSE Sensex closed 0.15 per cent down to 28,420.12 points.