Bombay High Court dismisses Dish TV promoters’ lawsuit against Yes Bank

Bombay High Court promoter was rejected on Friday World Crest Advisorsplease restrain DA Bank from voting at the extraordinary general meeting of the company on June 24.

Development is the latest in a dispute between Dish TV Chairman and Managing Director Jawahar Goel and YES Bank, lender to the live broadcaster, on corporate governance and fundraising plans.

owns 24.19% of the company’s shares.

Judge A.K. Menon dismissed the petition as a temporary measure to limit the participation of Catalyst Trusteeship and Yes Bank in exercising any rights, including voting rights, at the extraordinary general meeting of shareholders. Catalyst Trusteeship is the trustee for the securities that have been pledged to Yes Bank.

“In my opinion, on the basis of the arguments put forward before me, no case of temporary assistance can be put forward,” he said in the order. “The request for review is still pending. Controversial questions were raised as to the legal capacity of the bank, as the applicant argued that the bank was not a nominee, but an alleged assignee. The applicant did not provide prima facie evidence, nor did the balance of convenience favor the granting of relief. There is no possibility of causing irreparable harm to the plaintiff/applicant. There is no reason to once again consider the issue of granting indulgences.”

The plaintiff also requested permission to exercise its voting rights in respect of the pledged shares.

According to Dish TV sources, World Crest Advisors will now likely challenge the order in front of the division’s bench.

World Crest Advisors initially went to court to declare itself the owner of more than 440 million shares (about 24.19% of the capital) of a company owned by its creditor, YES Bank.

However, on December 23, 2021, the court stated that it was not inclined to provide any assistance (World Crest), but the outcome/outcome of the annual general meeting of shareholders, which was to be held on December 30, would depend on the outcome of the case. .

Later on December 30, Dish TV said in a notice to the stock exchanges that it had been ordered by the high court to disclose the results of the vote after the final hearing.

It was in May 2020 when YES Bank took advantage of the shares of Dish TV pledged by the promoters, gaining control of 24.19% of the company’s shares.

On September 24, ET reported that the dispute between Dish TV’s Goel and YES Bank had gone to court.

The bank wants to dissolve the entire board and remove the promoter’s family. He believes that the board acts in collusion with minority shareholders (founders), who should not have representation on the board.

Dish TV, which had been trying to raise funds for a while, wanted to continue issuing Rs 1,000 crore rights, the proceeds of which were to be used to attract new customers and for marketing and promotions. The lender objected to this issue.

In this case, Senior Counsel JP Sen and Venkatesh Dhond, along with Gathi Prakash of Cyril Amarchand Mangaldas, represented YES Bank and Catalyst Trusteeship, while Senior Associate Navroz Seervai and Shreni Shetty of ANB Legal represented World Crest Advisors.

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Represented by Senior Counsel Aspi Chinay and Rugved Mor of L&L Partners.