Bombay High Court struck down the Dish TV plea on Yes Bank’s voting rights

The legal tussle between Yes bank and Dish TV started in January when the latter moved the Bombay judicature seeking to stop Yes Bank from voting at the EGM.

A division bench of the Bombay state supreme court on Thursday rejected a petition by World Crest Advisors LLP, Dish TV India Ltd’s promoter group firm, asking the court to restrain Yes Bank Ltd from voting at the company’s extraordinary general meeting (EGM) on 24 June.

Yes Bank can now vote on the EGM to be persevered Friday.

A bench led by Justice Gautam S Patel and MJ Jamdar said that “World Crest has not made any case. the only judge is true in rejecting the ad-interim relief restraining Yes Bank and Catalyst Trusteeship from voting within the EGM on 24 June, the appeal is dismissed".

While passing the order the court also took into consideration the Supreme Court’s judgement of PTC India Financial Services. Mainly, Dish TV argued, SC ruled that lenders or pledgees don't seem to be the owners of shares and can't exercise rights once the pledged shares are invoked.

World Crest relied entirely on this judgement while arguing before the tribunal. Adding that Yes Bank Ltd isn't party to the pledged deed agreement, it's not a beneficial owner or perhaps a nominee. Thus, don't have any position for voting at the EGM .

However, the court said that since World Crest was in default of loan and it couldn't redeem the securities even Yes bank doesn't have any remedy to sell those shares. Therefore, such argument failed to meet the equitable principles in law. “The long arguments made by World Crest are remarkably short on equitable principles", Justice Patel said.

On 17 June a bench led by Justice AK Menon denied the promoters of Dish TV’s requests for an ad-interim injunction to forestall Catalyst Trusteeship Ltd. and Yes Bank from collaborating in and/or exercising any rights, including voting rights within the EGM. Additionally, the company’s promoters prayed that they may use their voting rights over shares that had been pledged.

This single judge’s order was then challenged by Dish TV on Monday.

The legal tussle between Yes bank and Dish TV started in January when the latter moved the Bombay tribunal seeking to stop Yes Bank from voting at the EGM.

Essentially, Yes bank demanded a rare general meeting (EGM)of shareholders to oust the service provider’s Promoter and decision maker Jawahar Goel, together with four other directors and re-oraganisation of the board citing corporate governance lapses.

Moreover, the applying was made by in response to a notice Dish TV issued on 25 May, requesting reappointment of its manager , Jawahar Goel, for the tenure of 1 April, 2022 to 31 March, 2025.