Taking the legal battle further ahead, ousted Chairman Cyrus Mistry has moved the National Company Law Appellate Tribunal (NCLAT) contesting a lower court ruling that the main petition was not maintainable. The National Company Law Tribunal (NCLT) had dismissed the main plea, the maintainability petition, on March 6.
“Mistry camp has now moved the appellate tribunal on the main case. It will also move NCLAT on the waiver petition that was dismissed by the tribunal on Monday. However, this would be done after reviewing the final order that would be up on NCLT’s website late on Friday,” sources close to the development said.
Following the rejection of the suits, the options before Mistry – who was unceremoniously removed as Tata Sons’ chairman on October 24, 2016 - was to move the appellate tribunal and then the Supreme Court.
On Thursday, sources told BusinessLine that Cyrus Mistry was readying to move the appellate tribunal, and had asked a battery of eminent lawyers to proceed ahead with a filing of a suit.
READ THE STORY:Mistry camp readying to move appellate tribunal
On December 20, Mistry had moved the NCLT asking it to protect Tata Sons from “oppression and mismanagement of minority interest”. The suit, filed through two of his family firms, Cyrus Investments and Sterling Investment Corporation, had stated that Shapoorji Pallonji group owns 18.37 per cent stake in Tata Sons.
The two Mistry companies had also filed another petition that sought the waiver of the minimum shareholding requirement in order to challenge the Tatas at the NCLT. Although, Mistry camp holds 18.4 per cent of ordinary shares in Tata Sons, when preference shares are counted, it accounts to about 2.17 per cent.
Under the Companies Act, 2013, parties or individuals who own more than 10 per cent stake in company can appeal at the NCLT. However, this could be waived under Section 244 of the Companies Act, but at the discretion of the tribunal.
Tata Sons in its response to NCLT’s orders had said, “We hope this brings to an end a vexatious campaign against the company, the Tata Trusts and Ratan N Tata. Tata Sons will continue its focus on its future development under the stewardship of our Executive Chairman N Chandrasekaran.”
“Mistry has failed demonstrably to build a case. We trust that NCLT’s decision brings this matter to a close,” the statement, which quoted Tata Sons Chief Operating Officer FN Subedar, said.