In an another attempt to stall Tata Sons’ move to oust him as director, former Chairman Cyrus Mistry has moved the National Company Law Appellate Tribunal (NCLAT), seeking a stay on the proposed shareholder meeting.
Tata Sons, the holding company of all Tata Group firms, had convened an EGM on February 6, seeking removal of Mistry as director from its board, a position he had held since 2006.
“The petition, filed on Thursday, has sought to clarify the position of maintainability of the case and block the EGM. It also wants to restrain Tata Sons from taking any steps or action to remove Mistry as a director and has sought an injunction,” a source close to the development said.
NCLT’s refusal The matter is slated to come up for hearing on Friday in Delhi, where NCLAT is based. The move comes after the National Company Law Tribunal (NCLT) refused to restrain Tata Sons’ EGM proceedings at its hearing on Tuesday.
Mistry’s camp has filed three petitions. The main plea is to challenge Mistry’s ouster as Chairman.
Then there are two other petitions — to stay the Tata Sons EGM on February 6, and to seek a waiver of Section 244 of the Companies Act, under which only those who own a more than 10 per cent stake can appeal at NCLT.
Mistry’s counsel CA Sundaram had refused to argue the main petition, and insisted that the tribunal must first pass orders on the issue of maintainability or give a decision on the waiver application.
The Tribunal said it will hear Mistry’s counsel’s argument on February 13 and 14; in case the petitioner fails to argue, the petition will be dismissed.
The original pleas had been filed by two of Mistry’s family-owned firms — Cyrus Investments and Sterling Investment Corporation — on December 20, 2016.
Tata Sons was represented by senior advocate Abhishek Manu Singhvi.