The Bombay High Court on Monday agreed to hear Madhu Kapur's plea that challenges the appointment of three directors on the board of private-sector lender Yes Bank.

Madhu Kapur is the wife of late Ashok Kapur - the co-founder Yes Bank. Madhu Kapur, who owns a 12 per cent stake in Yes Bank, wants her daughter Shagun Gogia to be inducted in to bank's board. But, the board declined her repeated requests, saying her appointment would not fulfill the fit-&-proper criteria of the Reserve Bank of India (RBI), forcing her to approach the court.

While Yes Bank has been arguing Section 10A (6) of the Banking Regulation Act 1949 doesn't allow a court to hear a dispute over appointment of directors of a private-sector lender; the Bombay HC said the bar wasn't applicable in this case.

Senior advocate Soli Cooper admitted, "Bombay High Court has just held that bar on its jurisdiction under Section 10A (6) of the Banking Regulation Act, 1949 is not applicable to the present case, and will now hear the case on merits."

Cooper added that Yes bank was still waiting fro full text of the HC's order.

In her plea, Kapur also challenged the appointment of three directors, viz. Ravish Chopra, M. R. Srinivasan, and Diwan Arun Nanda. She argued that she wasn't consulted previous to the three directors' appointment despite being a co-promoter of the bank.

Yes Bank Managing Director & CEO Rana Kapoor, who co-founded Yes Bank in partnership with late Ashok Kapur, owns 13.7 per cent stake in the bank.