Yes Bank-Dish TV case: Supreme Court extends protection to Yes Bank against UP Police notice, orders HC to hear plea afresh

The Supreme Court on Tuesday extended the operation of its 2021 order protecting Yes Bank from proceedings in connection with a criminal notice issued by the Uttar Pradesh Police, which effectively prevented the bank from exercising voting rights in Dish TV's annual general meeting (AGM). [Yes Bank Limited vs State of Uttar Pradesh].A bench of Chief Justice of India DY Chandrachud with Justices PS Narasimha and JB Pardiwala asked the Allahabad High Court to consider the bank's challenge to the notice afresh within two months. "We are of the considered view that the High Court was not correct in not entertaining the plea since alternate remedy was available. It should have been considered on merits. We remand the matter to High Court for fresh disposal on merits, and to be decided within two months," the Court said. The bench added that until the High Court disposes of the matter, the November 2021 order will continue to hold the field. It also clarified that it is not expressing any opinion on the merits of the case..The top court was hearing an appeal filed by Yes Bank against an order of Allahabad High Court dismissing the bank's plea against a freeze notice issued by the Gautam Buddh Nagar Crime Branch restraining the bank from exercising its voting rights in the Dish TV AGM.Echoing concerns earlier raised by the Supreme Court as well in the matter, Senior Advocate Abhishek Manu Singhvi argued,"How can police pass a restraining order in a civil proceeding? This is unheard of and extraordinary.".The move by police came on a complaint made by Essel Group, which had accused the bank's former chief executive, Rana Kapoor, of fraud. Yes Bank had extended a loan facility of ₹5,270 crores to Essel Group against the pledge of Dish TV shares in 2016. Following a default on the loan, Yes Bank had invoked the shares. Yes Bank initially approached the Allahabad High Court against the freeze order of the Uttar Pradesh Police, but the High Court had rejected the said plea, leading to the present appeal before the top court.In the last hearing of the matter, in November 2021, the top court had pulled up the Uttar Pradesh Police for issuing the notice to Yes Bank.The bench had taken strong objection to what it considered as using police and criminal process to achieve the results of civil proceedings, observing that short circuiting judicial process using police officers is a dangerous trend which will lead to lawlessness.The Court had said that such actions, which prevent the exercise of voting rights in a company, is something that even the company law tribunal has not done. As such, the to Court had also stayed the criminal proceedings initiated by the police against Yes Bank officials..[Read thread on live coverage of the hearing]