The Supreme Court today agreed to hear on Tuesday, November 30 Yes Bank’s appeal against the decision of the Allahabad High Court which dismissed the bank’s plea effectively seeking a de-freeze of its voting rights on shares of Dish TV during the annual general meeting.
Senior Counsel Abhishek Manu Singhvi mentioned the appeal before the apex court bench headed by Chief Justice of India NV Ramana citing urgency in the matter. Singhvi highlighted that the Annual General Meeting for which voting rights are sought to be exercised will end Tuesday and as such the case needs to be heard urgently.
Yes Bank, which has emerged as the largest shareholder of Dish TV with a holding of nearly 25% of the shares had found a freeze on its voting rights by the Uttar Pradesh Police after a criminal complaint was filed against the bank by the Essel group founder Subhash Chandra.
The shares were alleged to be “stolen” and the criminal procedure was initiated with respect to these shares.
On moving the Allahabad High Court against this police action, Yes Bank’s plea was dismissed as the high court ruled that it will not interfere in the investigation and the bank is free to exercise alternative remedies available to it under the law.
It is Yes Bank’s case that the criminal procedure has been put into action merely to prevent the largest shareholder from voting in the annual general meeting. As such, the company will be able to pass all its resolutions.
Yes Bank had acquired the shares in Dish TV after the company’s promoter failed to pay the debt owed to the bank and the pledged shares were invoked as a response by Yes Bank.
Chandra’s police complaint was filed against Yes Bank and its former managing director Rana Kapoor over allegations of fraud in the merger deal between Dish TV and Videocon D2H. As part of the investigation by the UP Police, the voting rights of the bank on the shares held by it stand frozen.