SC refers to another bench pleas of RBI, others related to writing off AT-1 bonds of Yes Bank

A seat comprising Chief Justice Sanjiv Khanna and Justices Sanjay Kumar and KV Viswanathan said it volition not perceive the 4 pleas filed against the precocious court’s decision.

Without assigning immoderate reason, the CJI said the pleas volition present beryllium heard by a seat headed by Justice A S Oka aft a week.

A seat headed by the past CJI D Y Chandrachud (since retired), connected March 3, 2023, had issued the notices to Axis Trustee Services Ltd connected arsenic galore arsenic 4 petitions filed by the RBI and others against the precocious tribunal judgement.

The apical tribunal had besides extended the enactment connected the cognition of the precocious tribunal order, quashing the determination of the Yes Bank head to constitute disconnected AT-1 enslaved worthy Rs 8,415 crore arsenic portion of the bailout successful March 2020.

The cases were not listed for proceeding earlier the seat aft the archetypal proceeding connected March 3, 2023.

The precocious tribunal had connected January 20, 2023 quashed the determination of the Yes Bank connected March 14, 2020 to constitute disconnected the bonds noting the head did not person the authorization to instrumentality specified a decision.

The apical court, however, had assured the AT-1 enslaved investors that it would effort to find retired immoderate benignant of solution to the fiscal occupation being faced by them aft elder advocator Mukul Rohatgi, appearing for Axis Trustee Services Ltd, said the invested wealth has go “zero” for nary responsibility of theirs.

“It was the apical officials of the slope who brought down the bank…Our wealth has go zero… we are not Tata-Birla. We are organization investors. Some radical invested their hard earned money. What incorrect did we commit? Why should we suffer,” Rohatgi had said.

Solicitor General Tushar Mehta, appearing for the RBI, and elder advocator Kapil Sibal, representing the Yes Bank, had said the PSU banks agreed to bailout and infused wealth successful Yes Bank aft it was decided to constitute disconnected AT-1 bonds.

The Yes Bank had said that these were non-convertible, perpetual bonds yielding precocious involvement astatine the complaint of 9.5 per cent and they tin beryllium written disconnected to prevention the bank.

The apical tribunal had said it mightiness usage its bonzer powerfulness nether Article 142 of the Constitution to find immoderate solution for the enslaved holders.

The precocious court, portion quashing the determination of the Yes Bank Administrator had, however, said its determination volition beryllium successful abeyance truthful the cardinal slope and Yes Bank whitethorn entreaty against it successful the apex court.

The precocious tribunal had successful its judgement said the Final Reconstruction Scheme of the Yes Bank issued by the Reserve Bank of India did not engulf wrong its fold penning down/off the AT-1 bonds.

“The last strategy sanctioned by the Central authorities did not incorporate the clause oregon proviso for penning down AT-1 bonds,” it had said.

The precocious tribunal had further held erstwhile the RBI prepared the draught strategy for reconstitution of the bank, it had invited suggestions and objections and it appears the petitioners had raised objection to the penning down of AT-1 bonds and adjacent suggested their conversion into shares.

The precocious tribunal had, however, stayed its bid for a play of six weeks.

The petitions earlier the precocious tribunal had besides sought directions against National Securities Depositories Limited and Central Depository Services to instrumentality steps to reverse the effect of immoderate accounting, entries, noting, write-offs, cancellations, oregon immoderate specified steps that whitethorn person been undertaken pursuant to the impugned determination to constitute disconnected the bonds.