Axis Trustee has threatened to initiate contempt proceedings in the Supreme Court against Yes Bank and its management, alleging wilful disobedience of the apex court’s October 15 judgment regarding the bank’s ₹8,415 crore Additional Tier-1 (AT1) bonds. The Supreme Court upheld a January 2023 Bombay High Court order that set aside the March 2020 decision by Yes Bank’s then-administrator to write down the bonds, ruling that the action was beyond statutory authority and contrary to regulatory frameworks. In an October 28 communication to the lender, Axis Trustee asserted that the Supreme Court judgment required Yes Bank to restore the AT1 bonds to holders with immediate effect, warning that failure to comply within the stipulated timeframe would result in direct contempt proceedings without further notice. Responding to the exchange filings late Friday evening, Yes Bank firmly rejected characterizations of its conduct as wilful disobedience, labeling the allegations baseless and lacking merit. The private lender reiterated its full commitment to operating within applicable laws, stating that it remains fully cognizant of the ruling, is actively examining its broader legal and financial implications, and will take all necessary and permissible steps in accordance with judicial directives.
