Supreme Court stays Dish TV's decision not to allow Yes Bank to vote in AGM

(PTI) New Delhi, Dat

The Supreme Court today stayed the Uttar Pradesh decision to grant relief to Yes Bank, in which the voting rights of Yes Bank were frozen at the annual general meeting of Dish TV. A bench headed by Justice DY Chandrachud said the police action in corporate matters was an exception and it was stayed till further orders.

"We cannot allow a police officer sitting in Gautam Buddha Nagar, Uttar Pradesh, to withhold voting rights of shareholders," the bench said. The court further said that the police here have done something which the National Company Law Tribunal has not done.

Lawyer Abhishek Manu Singhvi, appearing for Yes Bank, asked the court whether the Uttar Pradesh Police had the right to block Yes Bank's voting rights.

When the Uttar Pradesh police sent a notice to block Yes Bank's voting rights, Singhvi alleged that the notice was intended to prevent Yes Bank, the largest investor in Dish TV, from voting.

If Yes Bank votes in the AGM of Dish TV, it will vote against the reappointment of directors. To stop Yes Bank from doing so, Uttar Pradesh Police had stopped Yes Bank from voting at Dish TV's AGM.

Yes Bank had given a loan of Rs 50 crore to Essel Group between 2015 and 2016. However, after the Yes Bank scandal came to light and the new board of the bank was formed, the bank started recovering the loan given to Dish TV. Yes Bank, which failed to repay the company's promoter loan, took a 5 per cent stake in Essel Group. Yes Bank also took possession of the pledged shares in early 2020.