MUMBAI: The Bombay High Court has ruled that Madhu Kapur, the widow of YES Bank’s co-founder Ashok Kapur and the legal heir, has the right to jointly nominate directors to the board of the bank that her late husband founded along with Rana Kapoor.In an order posted on the court’s website late on Wednesday, the court said last year’s appointment of three wholetime directors, Rajat Monga, Sanjay Palve and Pralay Mondal, is invalid and observed that the bank had also not complied with the procedures in the appointment of Diwan Arun Nanda and Ajay Vohra to the board last year.YES Bank’s MD and CEO Rana Kapoor and the late Kapur’s family have been at loggerheads for years over the rights of the legal heir to nominate directors to the board jointly as per the articles of association formed at the time of founding the bank. Ashok Kapur was killed in the 2008 Mumbai terrorist attack.Madhu Kapur and her daughter had petitioned the Bombay High Court in 2013 about their lack of say in the appointment of directors and wanted the court to uphold their right to jointly nominate directors.Ms Kapur also wanted YES Bank board to accept the nomination of Shagun Gogia to the board but this was rejected by the bank, citing her lack of qualifications.The court in its order on Wednesday questioned the way in which Gogia’s candidature was rejected. "One may find any number of faults with the way in which the board went about the business of considering Shagun’s so-called nomination," said the order which runs into more than 150 pages. "It may be described as churlish or even vindictive."The court observed that Madhu can also file a fresh affidavit to seek the cancellation of the appointment of Diwan Arun Nanda and the reappointment of MR Srinivasan as directors of YES Bank. YES Bank and Kapoor can appeal the decision within five weeks."It is equally incorrect to suggest that the Plaintiffs (Madhu Kapur) have, only on account of Ashok Kapur’s demise, transmogrified into some sort of non-promoter capacity," the order posted on the court website said.Given the nature of this order, the fact that arguments spanned so many days and the time it has taken to deliver this judgment, the operative part of this judgment in relation to the seven individual directorships is stayed for a period of five weeks, the court said."The bank will decide on its further legal course of action in accordance with the advice which will be received from their solicitors," YES Bank said in a statement. "The reservation expressed by the court with respect to the appointment of the some of the directors have been already addressed in the ordinary course, as mentioned above and any further necessary procedural steps, which are required, will be taken in accordance with the law.""The crux of the issue is a complete disregard for the Articles of Association and the complete lack of an institutional and personal response from YES Bank and Rana Kapoor to our concerns over many years which led us to have to take the legal route," Shagun Gogia, daughter of Plaintiff Madhu Kapur said in a statement. "We have fought the case on the matter of principle as after my father’s demise there was a systematic attempt to deprive us, his successors, from his legitimate rights. Whilst we are not denying the success of the bank, the issue rights is a complete distinct issue."