The Extraordinary General Meeting of DishTV set for June 24 was upheld by a division of the Bombay High Court bench of Justices GS Patel and Madhav Jamdar on Thursday. Yes Bank is a shareholder of the DishTV corporation.
The court upheld the single-decision judge’s to not prohibit the bank from attending the EGM while it was hearing a petition from DishTV promoter World Crest Advisors LLP.
World Crest had applied to the High Court for a declaration that they were the owners of the 440 million DishTV shares.
In contrast, Yes Bank asserted that five other firms had pledged those shares in favour of Catalyst Trusteeship, a security trustee, in order to secure the term loans the bank had provided to them.
Yes Bank officially declared that it was the shares’ beneficial owner and intended to exercise all of its ownership rights.
World Crest, on the other hand, asserted that Yes Banks’ claim to be DishTV’s largest shareholder was the result of a fraudulent transaction.
DishTV announced in May of this year that an EGM was being held to ratify and pass a resolution for the reappointment of the managing director, the full-time director, and a non-executive independent director.
The High Court denied World Crest’s request last week for an order prohibiting Catalyst and the bank from exercising their voting rights with regard to the shares at issue in the lawsuit at the upcoming EGM.
The single judge had ruled that World Crest could not reapply for the same reliefs since it had already withdrew an interim application.
A subsequent application that was ultimately dismissed by the single-judge added the new cause of action to the record.
World Crest argued that the single judge’s ruling was in violation of the Supreme Court’s ruling in the PTC India case, which outlined the rights of the pledgee.
On the other hand, Yes Bank maintained that the bank had the shares as collateral for a loan that some other promoters had taken out, for which Catalyst served as security trustee.
It was argued that the shares ended up being transferred to the bank because the loan could not be repaid.
