Yes Bank has approached the Supreme Court seeking a review of its October 15 judgment that overturned the write-off of Rs 8,415 crore worth of Additional Tier-1 (AT-1) bonds, reopening a major legal dispute between the lender and its bondholders.
In a November 13 regulatory filing, the bank said it had submitted a review petition under Article 137 of the Constitution, challenging the court's judgment and order dated October 15, 2026. The Supreme Court had upheld an earlier Bombay High Court ruling that invalidated the bonds' write-off.
The development comes days after Axis Trustee Services, representing the bondholders, filed a contempt petition against Yes Bank. The trustee alleged that the lender had failed to provide a concrete plan for restoring the bonds and implementing the court's ruling.
In its October judgment, the Supreme Court held that the bank's administrator had acted under an erroneous understanding of his authority. The administrator could not write down the AT-1 instruments after the restructuring scheme had been finalised, the court ruled, making the action impermissible.
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The dispute dates back to Yes Bank's financial collapse in 2020. The lender was placed under a reconstruction scheme, bringing in new investors, while its AT-1 bonds were written off as part of the resolution process. Japan's Sumitomo Mitsui Banking Corporation now holds a 24% stake in the bank.
AT-1 bonds are risk-bearing instruments that banks use to strengthen their capital. They offer relatively higher returns but can be written off or converted into equity when a lender faces financial stress.
Following the October ruling, Yes Bank was reportedly unlikely to pay coupons due on the instruments this year. The latest petition adds another legal step to the dispute, with the bank saying it will disclose further material developments as required.
Also Read | Yes Bank AT-1 Bond Case: Lender Rejects Non-Compliance Allegations After SC Verdict
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