Yes Bank may opt to settle dispute with Kapurs outside court

The dispute between Yes Bank promoter Rana Kapoor and Madhu Kapur, widow of co-founder Ashok Kapur, may not go to court for settlement now as both the parties seems to be prepared for an out-of-the-court settlement.

"It will be nice, as nobody wants a situation like this. We will certainly favour an out-of-court settlement," a person close to Madhu Kapur told Business Standard.

The two parties have been in dispute since Madhu Kapur sought a board position after Ashok's death, but got rejected by the bank on RBI's fit-and-proper criterion.

Madhu Kapur recently sought a board position for her daughter Shagun Kapur Gogia. But bank said it will discuss the proposal at its next board meeting on July 24. However, upset with the Yes Bank's response, Kapur and her two children moved the Bombay High Court for a stay on the bank's annual general meeting (AGM).

The family alleged that they were not consulted on appointment of three directors - Diwan Arun Nanda, Ravish Chopra, and M R Srinivasan.

"YES Bank Chairman M R Srinivasan and Rana Kapoor had offered to discuss Shagun's appointment in the bank's next board meeting (originally scheduled on July 24) even before the court order. They had offered to resolve the dispute through discussion. So, there is scope for this matter to be settled outside of court," said another person familiar with the development.

Read more about: yes bank
Story first published: Tuesday, June 11, 2013, 9:33 [IST]
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