WORLD CREST ADVISORS LLP Vs. CATALYST TRUSTEESHIP LIMITED

JUDGEMENT

(1.) By this Interim Application, the Applicant/Plaintiff has sought an injunction restraining Defendant No. 2-Yes Bank Limited (for short 'Yes Bank') and Defendant No. 10-J.C. Flowers Asset Reconstruction Private Limited (for short "JCF") from exercising rights including voting rights in respect of the suit shares. Further injunction is sought restraining the Yes Bank Limited and JCF from transferring, alienating, creating any third party rights in respect of the suit shares. Consequential relief is sought by way of injunction restraining the Defendant/Respondent Nos. 1 and 2 and the Defendant/Respondent No. 10 - JCF from interfering and/or seeking to participate in the management and affairs of the Defendant/Respondent No. 3 by claiming rights under the suit shares.

(2.) The Plaintiff is a holder of 9,52,100/- (0.05%) shares of Defendant No. 3-Dish TV India Limited ("Dish TV") and Pledgor of 44,00,54,852 shares of Dish TV. The Plaintiff is admittedly a part of the Promoter Group of Dish TV i.e. Jawahar Lal Goel Group.

(3.) Defendant No. 1-Catalyst Trusteeship Limited (for short "Catalyst") is a Pledgee and security trustee for the beneficial interest of Yes Bank Limited. Defendant No. 2-Yes Bank Limited was the single largest shareholder of Dish TV, holding 25.63% shares (including 0.85% through IDBI Trusteeship Services Limited) till 21/12/2022, after which Yes Bank transferred its share holding in Dish TV to JCF, pursuant to assignment of its stressed asset portfolio aggregating upto INR 48,000 Crores (approx.) to JCF together with the underlying security created thereof. Defendant No. 3-Dish TV India Limited ("Dish TV") is a public limited company of which Jawahar Lal Goel (the brother of Subhash Chandra) is a former Managing Director of Dish TV, holder of 0.01% shares of Dish TV. Defendant Nos. 4 to 9 Essel Group Entities are collectively referred to as 'Borrowers' of Yes Bank Limited who had advanced loans to the Borrowers amounting to INR 5,270 Crores (referred to as "the loan transaction"). The Plaintiff had in turn pledged 44,00,54,852 shares of Dish TV for securing these loans. Defendant No. 10 JCF is a company to whom Yes Bank has assigned its stressed asset portfolio aggregating to INR 48,000 Crores including as claimed by Yes Bank, the said loans advanced to the Borrowers. JCF is stated to be presently the single largest shareholder of Dish TV with 25.63% shares [held by itself, through IDBI Trusteeship Services Limited and through Yes Bank (in its capacity as the agent of IDBI Trusteeship Services Limited)]. At the outset, a brief background of facts is necessary.