A division Bench of the Bombay High Court on Thursday dismissed an enchantment by the promoter of DishTV India Pvt Ltd looking for to restrain Yes Bank from exercising its rights, together with voting, over shares held by the lender.
With this, Yes Bank, a shareholder of DishTV, can take part and vote on the Extraordinary General Meeting (EGM) of Dish TV to be held on Friday (June 24). A division Bench of Justice Gautam S Patel and Justice Madhav J Jamdar handed the order.
World Crest Advisors LLP, promoter group of DishTV, had moved an enchantment earlier than the division Bench after a single-judge Bench of Justice Anil Okay Menon, on June 17, rejected its interim utility. World Crest, in its plea, had sought to restrain Catalyst Trusteeship and Yes Bank from collaborating in and/or exercising any proper, together with voting rights, within the EGM scheduled on June 24.
Justice Menon had held that the applicant (World Crest) had “not made out a prima facie case nor is the balance of convenience favouring grant of relief” and “no irreparable harm is likely to be caused to the plaintiff/applicant”.
Last month, DishTV had made an announcement concerning the EGM to ratify and move a decision for re-appointment of the managing director, the whole-time director and a non-executive impartial director.
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An interim utility was filed in a swimsuit whereby World Crest has sought itself to be declared as house owners of over 440 million (practically 24.19% stake) shares of DishTV.
However, Yes Bank had claimed that the involved shares have been pledged in favour of Catalyst Trusteeship, a safety trustee, by 5 different corporations to safe the time period loans granted by the financial institution to them.
Yes Bank claimed to be the helpful proprietor of the shares and sought to train rights in respect of the identical. World Crest, in its swimsuit, had claimed that Catalyst had acted in collusion with the financial institution and transferred the shares to itself and later to the financial institution.
The DishTV promoter apprehended that the financial institution will search to vote on the shares over which solely the previous had entitlement rights, and subsequently sought a restraining order.
Yes Bank, although opposed the appliance and claimed that it’s entitled to train voting rights and that they’ve been exercising voting rights previously.
The financial institution had added that Rs 5,270 core is payable and overdue from the debtors and the World Crest is a part of the group controlling the debtors and it’s yet another try and stall financial institution’s participation within the assembly after the appellant did not receive a beneficial order final yr.
World Crest argued in its enchantment earlier than a division Bench that that order by a single-judge bench was “erroneous” and opposite to previous Supreme Court judgments and the identical wanted to be quashed and put aside.
Yes Bank, nevertheless, argued that it held shares with it by advantage of loans taken by sure different promoters for which Catalyst was a safety trustee. It stated that as a result of the mortgage couldn’t be repaid, the shares got here to be transferred with the financial institution. However, the Bench refused to accede to World Crest’s enchantment and dismissed the identical.