OPEN APP
Home / Companies / News /  HC refuses relief to Dish promoters
Listen to this article

The Bombay high court on Thursday refused to grant relief to a promoter entity of Dish TV India Ltd, which questioned the legal validity of Yes Bank’s shares in the satellite-TV provider and wanted the court to debar the company’s top shareholder from voting at its 30 December annual meeting.

Separately, a new case was filed against Yes Bank by a group of Dish TV shareholders before a company court in Mumbai, alleging that the bank was “committing unlawful acts". The Mumbai bench of the National Company Law Tribunal will hear the petition filed by the “authorized representative of shareholders of Dish TV, Trilok Chand Jindal" on Friday, according to an executive familiar with the development.

“The company has been served with a copy of a petition on 22 December," Dish TV said in a disclosure to the exchanges.

Anticipating new lawsuits, Yes Bank last week filed a caveat that allows the bank to present its arguments to the tribunal if it presides over any complaint brought before it, Mint reported in its edition dated 16 December. A senior executive of Yes Bank had then said that the new lawsuits are being filed to restrict the bank from exercising its voting rights at the shareholders’ meeting.

Dish TV cannot push back its annual meeting into the next year as the current rules governing public companies only allow a maximum time until the end of the calendar year to convene the meeting.

The tussle between Dish TV promoters and Yes Bank erupted after the bank demanded in a 5 September letter the reconstitution of the Dish TV’s board, including removal of chairman and managing director Jawahar Goel and induction of seven directors.

Goel is the younger brother of Essel Group founder Subhash Chandra and owns 5.93%in Dish TV, while Yes Bank owns 25.63%.

The ongoing fight between Dish TV and Yes Bank has prompted proxy advisory firm Institutional Investor Advisory Services India Ltd (IiAS) to criticize the Dish TV management.

“What began as a bank asserting its rights, first as a lender and then as a shareholder, has now metastasized," IiAS said in a note to clients on Thursday. “In adopting a single-minded strategy that Dish TV’s promoters have pursued to hold back Yes Bank, they have perhaps overplayed their hand and risk causing irreparable damage to a microcosm of the lending ecosystem. The government has spent the past few years attracting capital through its ease of doing business policies of which trust in our markets is an important component. This trust is now being chipped away, which is why this matter is now no longer just between Dish TV’s promoters and Yes Bank. MCA, Sebi and RBI all need to step in."

An email sent to Yes Bank seeking comment went unanswered.

“Dish TV is not involved in any such litigation," said a spokesman for Dish TV.

Subscribe to Mint Newsletters
* Enter a valid email
* Thank you for subscribing to our newsletter.
Close
Recommended For You
×
Edit Profile
Get alerts on WhatsApp
Set Preferences My ReadsFeedbackRedeem a Gift CardLogout