Companies

NCLAT to rule on Cyrus Mistry-Tata Sons case

Our Bureau Mumbai | Updated on December 18, 2019 Published on December 18, 2019

Cyrus Mistry (File photo)   -  Hand out

The National Company Law Appellate Tribunal (NCLAT) has listed the Tata Group-Cyrus Mistry case, the country’s largest corporate war, for judgement on Wednesday.

The case was listed for hearing in the court of NCLAT Chairperson S.J. Mukhopadhaya and Member (Judicial) Bansi Lal Bhat, according to a posting on the appellate tribunal’s website.

Cyrus Mistry, who was the sixth chairman of the Tata Group between 2012 and 2016, was ousted following a boardroom coup on October 24, 2016. Later, on December 20, 2016, Mistry — through two family-run firms — Cyrus Investments and Sterling Investments Corp — had moved the National Company Law Tribunal in Mumbai against Tata Sons and others for oppression and mismanagement.

Mistry also accused Tata Sons — the holding company of all Tata Group firms — of governance issues due to intervention by Tata Trusts Chairman Ratan Tata.

Mistry had also accused the Tata Group of mismanagement and oppression of minority shareholders’ rights, apart from challenging his removal as Tata Sons’ Chairman.

On February 20, 2017, N Chandrasekaran, who was heading Tata Consultancy Services, took charge as Chairman of Tata Sons.

On July 9, 2018, NCLT dismissed Cyrus Mistry’s petition and ruled in favour of Tata Sons.

NCLT’s Mumbai special Bench of B. S. V. Prakash Kumar and V. Nallasenapathy dismissed Cyrus Mistry's petition "without cost". The tribunal also said that a company’s board was competent enough to remove the chairman, adding that Mistry was ousted as the Tata Sons' board had lost confidence in him.

Also read: Cyrus Mistry moves NCLAT against Tatas

The Mistry family is the single largest shareholder in Tata Sons, with an 18.4 per cent stake.

Read also: Cyrus should have been more careful in making allegations against Tatas: NCLT

In October 2018, coinciding with the second year of his ouster from Tata Sons, Mistry made a comeback to the corporate world by starting a venture capital firm Mistry Ventures LLP.

 

Published on December 18, 2019
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