The Telegraph
Wednesday , April 9 , 2014
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Court sets deadline for Yes Bank solution

Kapoor: Talk time

Mumbai, April 8: The Bombay high court today asked Yes Bank managing director and chief executive Rana Kapoor and Madhu Kapur, the widow of co-founder Ashok Kapur, to settle their dispute over the right to nominate directors.

A two-judge bench of the court, comprising justices S.J. Vazifdar and B.P. Colabawalla, asked the feuding parties to work out a solution within a week. The matter will be heard on April 15.

The Yes Bank board had earlier turned down a request by Madhu Kapur to induct her daughter Shagun Gogia as a member on the board in 2009, as it felt that the appointment would not fulfil the Reserve Bank’s fit-and-proper criteria.

Kapur has challenged the appointment of three directors — M.R. Srinivasan, Diwan Arun Nanda and Ravish Chopra — on the grounds that she was not consulted despite being a co-promoter of the private sector lender.

Madhu Kapur contends that she has the right to appoint a director under the articles of association of the bank. Kapur has a 12 per cent stake in the bank, while Rana Kapoor owns 13.7 per cent.

The Kapur family and Yes Bank are engaged in a dispute over the former’s right to seek a nomination on the bank’s board. Gogia claims she has the right because of her status as a legal heir, while the bank argues that she may not qualify the RBI’s criteria for directorship.

Rana Kapoor was not available for comment as he was travelling. However, it is understood that both sides will attempt to resolve the dispute either later this week or early next week after his return.

Today’s order was in response to an appeal by Yes Bank against a Bombay high court ruling on March 24 that it had the jurisdiction to hear Madhu Kapur’s plea.