NCLT rejects Cyrus Mistry's plea against mismanagement at Tata Sons
Cyrus Investments and Sterling Investments, both Mistry family-owned businesses, had filed the petition against Tata Sons.
National Company Law Tribunal (NCLT) on Monday rejected ousted chairman Cyrus Mistry's family's plea stating that they are not eligible under the Companies Act to file a petition alleging mismanagement and oppression of Tata Sons.
Cyrus Investments and Sterling Investments, both Mistry family-owned businesses, had filed the petition against Tata Sons after Mistry was sacked from the chairman post in October 2016.
NCLT observed that Mistry's petition was "not maintainable".
Tata Sons had claimed that Mistry's two companies does not own required 10% shareholding, including preference shares, to file such petition.
In January, Mistry camp said in an affidavit filed through an authorised representative, "...Assuming whilst denying that the petition as filed is not maintainable under section 244(1) of the Act, the petitioners are making this application seeking a waiver or exemption from the requirements of Section 244(1)," PTI had reported.
The Section 244 of the Company's Act 2013, enables any member or members holding not less than one-tenth of the issued share capital of the company to file a petition.
It also says "Tribunal may, on an application made to it in this behalf, waive all or any of the requirements" to enable the members to apply under section 241.
On October 24, Tata Sons had fired Mistry on as the company's chairman and brought back Ratan Tata as its interim chairman.