Supreme Court Upholds Quashing of Yes Bank AT1 Bond Write-Off

The Supreme Court upheld a judgment setting aside the write-off of Yes Bank’s Additional Tier 1 bonds worth approximately ₹8,415 crore.

Background and dispute

The dispute arose from the treatment of AT1 instruments during Yes Bank’s reconstruction. Bondholders contested the legality of the decision that extinguished their investment.

Legal issue and court’s approach

The Court’s decision leaves the High Court’s quashing of the write-off in place. The legal effect concerns the specific reconstruction action and instruments in issue; it should not be read as a general guarantee of all AT1 investments.

Order and practical consequence

Implementation and any consequential claims must follow the operative court orders and applicable regulatory framework.