Companies

Apex court to hear Mistry’s plea for seat on Tata Sons board

Rajesh Kurup Mumbai | Updated on May 29, 2020 Published on May 29, 2020

Cyrus Mistry

The Supreme Court on Friday agreed to hear ousted Tata Group Chairman Cyrus Mistry’s petition seeking a “proportionate” representation for Shapoorji Pallonji Group (SP Group) on Tata Sons board.

The SP Group holds 18.4 per cent stake in Tata Sons, the parent company of all Tata Group firms. In October 2016, Mistry was removed as its Chairman and later a director.

Cyrus Mistry, in his petition filed before the Supreme Court, had stated that SP Group is the single largest shareholder in Tata Sons and it should receive a proportionate representation on the board.

In his plea, Mistry, has also sought “powers of an affirmative vote” to the group’s directors and sought to relinquish affirmative vote in hands of select Tata Sons’ directors.

The Supreme Court will hear the case along with Tata Sons’ petition on NCLAT’s ruling on reinstating Mistry after the lifting of the lockdown and depending on the Covid-19 situation.

In its petition, SP Group also states that the relation with Tata Group dates back to 1920 and in several occasions it had helped the group financially.

In February this year, the SP Group moved the Supreme Court seeking correction in the order passed by the National Company Law Appellate Tribunal (NCLAT) in December 2019. Though, NCLAT had reinstated Cyrus Mistry as executive chairman of Tata Sons, the Mistry camp had flagged certain ‘anomalies’ in the order.

The cross appeal – filed through two Mistry group firms — Cyrus Investments and Sterling Investments Corporation — said the NCLAT order “refrained from granting certain reliefs that were warranted and reasonably necessary in the facts and circumstances of the case, particularly since NCLAT is the last forum for findings of fact”.

Cyrus Mistry was not interested in making a comeback despite the NCLAT order reinstating him as the group’s executive chairman. Further, the ousted chairman also said in a statement in January that he will not pursue directorship of Tata Consultancy Services, Tata Teleservices Ltd or Tata Industries.

However, he will seek a seat on the Tata Sons board, which the SP Group had held for nearly 30 years. This was not a quest for position or power, he added.

READ THE STORY: Cyrus Mistry not to return as Tata Sons chief, says ‘fight was never about me’

Published on May 29, 2020
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