New Delhi, Oct 31 (IANS) Axis Trustee Services Limited, the trustee for the Additional Tier 1 (AT1) bonds issued by Yes Bank, called upon the private sector lender to reinstate the bonds and take necessary corporate actions within three days, failing which the former would initiate contempt proceedings in Supreme Court against the bank.
The trustee said in a filing that non-compliance will constitute “wilful disobedience by the lender of the Supreme Court’s October 15 judgment”.
Yes Bank said it had responded to the trustee, acknowledging the Supreme Court judgment and reiterating that it was fully committed to acting in accordance with the ruling and applicable law, according to an exchange filing.
The Bank replied to the Trustee that it is cognisant of the matters and is examining the SC Judgment and its implications in detail.
“The Bank will take all such steps and measures as are necessary and permissible under applicable law,” Yes Bank said.
“Should the Bank fail to comply with the said judgment as called upon above within the stipulated period, we shall be constrained to initiate proceedings for contempt before the SC, against the Bank and its directors and officers responsible for compliance with the said judgment, without any further notice, entirely at the Bank’s risk as to costs and consequences,” Axis Trustee said in its letter to Yes Bank.
Bank has merely stated that it is “examining the judgment in detail, including evaluating all available options and suitable actions or steps going forward,” the trustee said, adding that under the guise of evaluating its options, the bank should not withhold compliance with the said judgment.
Yes Bank rejected the allegation in its response letter, clarifying that it had not wilfully disobeyed the court.
“The Bank does not accept the characterisation in your Letter of its conduct as wilful disobedience and the assertions in your Letter are baseless and without merit,” it said.
The Supreme Court had, on October 15, upheld the Bombay High Court’s decision to set aside Yes Bank’s Rs 8,415 crore AT1 bond write-off carried out in March 2020. It ruled that the bank’s administrator had acted outside its authority and the applicable regulatory framework.
Axis Trustee challenged the decision of the then administrator of Yes Bank to write down the AT1 bonds in March 2020 before the Bombay High Court.
—IANS
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