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In a setback to the Cyrus Mistry camp, the National Company Law Tribunal (NCLT) has rejected a waiver petition filed by the ousted Tata Sons’ chairman. The tribunal also dismissed the main petition, which it heard last on April 4.
The Mistry camp now has the option to move the National Company Law Appellate Tribunal (NCLAT) and then the Supreme Court; it declined to divulge its plan of action.
The Mistry camp had sought a waiver on the condition in the Companies Act that a firm or person should hold a minimum 10 per cent share to file a petition before the NCLT. The waiver was sought after Tata Sons alleged the Mistry camp had no locus standi to move the NCLT, as the Shapoorji Pallonji group owns only 2.17 per cent of the Tata Sons share capital.
The Mistry camp sought the waiver and asked the NCLT to use its discretion.
Main plea also dismissed The NCLT also dismissed the main plea – the maintainability petition — which cited governance lapses and compromise of minority shareholder interests, after Mistry was ousted as Tata Sons Chairman.
On December 20, Mistry had moved the NCLT asking it to protect Tata Sons from “oppression and mismanagement of minority interest”. The suits, filed through two of his family firms, Cyrus Investments and Sterling Investment Corporation, had stated that the Shapoorji Pallonji group owns 18.37 per cent stake in Tata Sons.
In its reply later on January 9, Tata Sons had sought dismissal of the petition with “exemplary costs” as it did not meet the conditions under the Companies Act.
Tata Sons welcomes ruling “We are pleased that Mistry’s claims have been dismissed by NCLT. The order... represents a vindication of our position. We hope this brings to an end to the 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,” said Tata Sons Chief Operating Officer FN Subedar.
This ruling is the fifth one by the NCLT, rejecting relief requested by the Shapoorji Pallonji Group companies and Cyrus Mistry, it said.
“Mistry has made many ill-advised and groundless allegations intended to besmirch the name of the Tata Group,” said Subedar.
“Today’s ruling... makes clear that there is no case to be heard. Over the past six months, Mistry has failed demonstrably to build a case. We trust that NCLT’s decision brings this matter to a close,” he added.
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