Providing a sense of interim relief to Cyrus Mistry, the National Company Law Appellate Tribunal ruled that Tata Sons must not invoke provisions to force the Shapoorji Pallonji (SP) group to sell its stake. The SP group is the single largest minority shareholder in Tata Sons, with an 18.4 per cent stake.

The SP group is currently run by Shapoor Mistry, elder brother of Tata Sons’ ousted chairman Cyrus Mistry.

The appellate tribunal, which also admitted Mistry’s petition, will start the hearing in the case from September 24. BusinessLine has reviewed a copy of the order.

“…if the appellants are forced to sell their shares which may affect the merits of the appeal, as they will cease to be member(s) of the company, we direct the respondents (Tatas) not take any step in terms of Article 75 for transfer of shares of minority shareholders like appellants and others during the pendency of the appeal,” the appellate tribunal said in its order.

“No further interim order is required to be passed at this stage,” it said, adding, “the appeal is admitted for hearing”.

However, NCLAT declined to pass an order on Mistry’s plea to prevent Tata Sons from converting itself into a private firm. On Friday, a two-member bench of justices SJ Mukhopadhaya and Bansi Lal Bhat said the tribunal will decide on the conversion issue after the final hearing of the case. In September last year, Tata Sons had received shareholders’ nod to convert itself into a private firm and also change the name to Tata Sons Pvt Ltd.

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