Bombay HC reserves final order in YES Bank case for May 12

The near two-year old court battle between YES Bank and Madhu Kapur may finally come to an end in the Bombay high court on May 12.

On Thursday, the court suggested that both the parties should try and settle the dispute amicably but the final order has been reserved for Tuesday.

The judge, Gautam Patel, has also suggested that for the non-disruptive functioning of the bank, the promoters should consider reducing their holdings below 10%.

If the shareholding is brought down below this threshold limit, the conflict of nomination of IP (Indian Partners) Representative Director gets resolved as they will both end up forfeiting their rights.

At the end of March 31, 2015 Rana Kapoor, Managing Director & Chief Executive Officer of YES Bank owned 11.77% stake in the bank where as Kapur and family owns 10.29%.

As a part of the operative order the Judge has also made an observation that Shagun Kapur Gogia does not get a board seat.

However, he added that both parties have the right to nominate directors and Ashok Kapur’s family inherits the right. This had been a bone of contention between the two parties.

Kapur’s husband-Ashok Kapur had co-founded YES Bank with his brother-in-law Rana Kapoor. Madhu Kapur and Rana Kapoor's wife Bindu are sisters.

Madhu Kapur, the second largest shareholder had moved court, claiming her right as the bank’s co-promoter was violated and she wasn’t consulted before the bank had appointed a few directors on its board.

Kapur’s daughter Shagun Kapur Gogia had also applied to be a member of the bank’s board, in June 2013, but the board had rejected her nomination on the basis that she lacked sufficient experience.

Yes Bank