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Bombay High Court will hear Kotak Bank’s plea against RBI on March 6

The Bombay High Court will hear the case filed by Kotak Mahindra Bank against central banker the Reserve Bank of India (RBI) on March 6.

As per the Bombay High Court website, the division bench of Justice SC Dharmadhikari and Justice RI Chagla has posted the hearing in March.

“Due to paucity of time the matter is adjourned to March 6,” said the division bench in its order, further adding, “In case any ad-interim/interim relief is operating till today, the said order will continue to operate till the next date. If ad-interim/interim relief is not granted for a limited period, the said order will remain unaffected.”

In December 2018, Kotak Mahindra Bank had moved to the court after the central banker had rejected its proposal to issue perpetual non-convertible preference shares to comply with promoter stake rules.

Uday Kotak, who owns around 30% in the bank has been directed by the RBI to cut his holding to 15% by March 2020.

Last year in March, when the case came up for the hearing, the court had directed Uday Kotak to become a party in the matter by the way of filing an affidavit to clear his stand regarding the issuance of perpetual non-convertible preference shares (PNCPS).

In the case, Senior Counsel Vyankatesh Dhond along with the law firm, Udwadia & Co are representing RBI, while Kotak Mahindra Bank is being represented by Senior Counsel Darius Khambatta and Vikram Trivedi, managing partner of law firm Manilal Kher Ambalal & Co led team.

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