The National Company Law Tribunal (NCLT) has given time till November 15 to satellite service provider Dish TV to file its reply in a petition filed by YES Bank, the company's largest shareholders.
YES Bank, which holds a 25.63 percent stake in Dish TV, sent a notice to the company on September 23 to call for an extraordinary general meeting (EGM) seeking changes in Board.
However, Dish TV on October 13 said that the EGM cannot be called, in an exchange filing.
"In view of the above and considering (a) its fiduciary duties and (b) that the Board shall be in violation of extant laws if it acts upon the Notice, the Board unanimously agreed that the EGM cannot be called, as sought by YBL vide the requisition Notice dated September 21, 2021, received by the Company on September 23, 2021, vide e-mail. The Board also instructed the management to send a detailed response to YBL," the company had said.
YES Bank then sought NCLT's direction to Dish TV's board to call for an EGM.
On the NCLT hearing, Dish TV in a statement said, " Upon filing of the application by YES Bank, the matter was heard by Hon'ble NCLT, Mumbai Bench on October 27. The next date of hearing is November 23, 2021."
Counsel appearing for Dish TV, Navroz Seervai referred to the Bombay High Court order in the Zee Entertainment-Invesco matter saying that the order clarified that in such matters NCLT has no jurisdiction to entertain this kind of plea.
On the other hand, YES Bank sought NCLT's intervention to direct Dish TV to call for an EGM or provide shareholder details to YES Bank so that they can call the meeting on their own.
How it all began
The tussle between Dish TV and its largest shareholder YES Bank began in February this year, when Dish TV approved a rights issue of Rs 1,000 crore.
On May 28, Dish TV made a press announcement regarding its intention to proceed with the Rs 1,000 crore rights issue despite YES Bank asking the company to desist from proceeding without consulting significant shareholders.
On September 3, YES Bank objected to the approval and sought the reconstitution of the board. It stated: “The board is not acting in line with good corporate governance standards and is not a fair representation of the incumbent significant shareholders of the company being various banks and financial institutions holding about 45 percent shareholding in the company.”
The changes sought
The bank has asked for the ouster of MD and Director Jawahar Lal Goel along with the removal of Rashmi Aggarwal, Bhagwan Das Narang, Shankar Aggarval, and Ashok Mathai Kurien.YES Bank is seeking the appointment of new independent directors, including Akash Suri, Sanjay Nambiar, Vijay Bhatt, Haripriya Padmanabhan, Girish Paranjpe, Narayan Vasudeo Prabhutendulkar, and Arvind Nachaya Mapangada.