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In a move that could further flare up his ongoing tussle with the Tatas, ousted Tata Sons Chairman Cyrus Mistry has moved the National Company Law Appellate Tribunal (NCLAT) against a lower court order that dismissed his plea.
A petition was filed before the appellate tribunal on Friday, sources close to the development said without giving further details.
On July 9, the National Company Law Tribunal’s (NCLT) Special Bench in Mumbai had dismissed Mistry’s petition, ruling in favour of Tata Sons. Mistry had accused the Tata Group of mismanagement and oppression of minority shareholders’ rights. He had also challenged his removal as Tata Sons Chairman following a boardroom battle.
Over the last month, the Mistry camp has been preparing to challenge the order at NCLAT in New Delhi. “The fight for ethical corporate governance will continue,” lawyer Somasekhar Sundaresan had told BusinessLine on July 9 immediately after the verdict was pronounced.
On July 9, Cyrus Mistry’s office said in a statement: “The ruling of NCLT is disappointing, although not surprising. We will continue to strive for ensuring good governance and protection of the interests of minority shareholders and all stakeholders in Tata Sons from the wilful brute rule of the majority.”
Appeal on merits
“The ruling is in line with the earlier position expressed by the Tribunal. An appeal on merits will be pursued. Matters like Tata TeleServices, AirAsia, recovery of dues from Siva (entrepreneur C Sivasankaran), non-closure of loss-making Nano, and a struggling resolution of Tata Steel Europe will be pursued. Not only the facts that were under consideration but also subsequent facts and developments that continue to evidence oppression and mismanagement will be under scrutiny and will be pursued in full earnest,” it said.
On the other hand, Tata Sons had welcomed the NCLT order, stating it vindicated the position of Tata Trusts and Tata Sons.
“Tata Sons hopes that a finality will be given to the judgment of NCLT, Mumbai in the larger interest of companies, the shareholders and the public,” Tata Sons Chairman N Chandrasekaran had said in a statement.
Mistry, who was the sixth Chairman of the salt-to-software 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 NCLT against Tata Sons and others for oppression and mismanagement.
The Mistry family is the single largest shareholder in Tata Sons, with an 18.4 per cent stake.
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.
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