Setback for Cyrus Mistry: NCLT dismisses petition
The National Company Law Tribunal (NCLT) on Monday dismissed the waiver application filed by Shapoorji Pallonji Group companies against Tata Sons.
This is the fifth time the company law tribunals rejected reliefs requested by Shapoorji Pallonji Group companies and former Tata Sons chairman Cyrus Mistry.
The NCLT, by its order dated March 6, 2017, had held that the claims made by the Shapoorji Pallonji Group companies, espousing the case of former Tata Sons chairman Cyrus Mistry, was not maintainable, as it did not meet the minimum shareholding threshold of 10% of issued share capital prescribed under Section 244 of the Companies Act, 2013.
Today, the NCLT passed a further order dismissing the waiver application made by them for granting exemption from meeting those shareholding threshold requirements, as also Shahpoorji Pallonji Group companies Petition alleging oppression of minority and mismanagement at Tata Sons.
Welcoming the ruling, F.N. Subedar, Chief Operating Officer of Tata Sons, said: “We are pleased that Mr. Mistry’s claims have been dismissed by the NCLT. The order of the NCLT represents a vindication of our position.
“We hope this brings to an end a vexatious campaign against the Company, the Tata Trusts and Mr. Ratan N. Tata. Tata Sons will continue its focus on its future development under the stewardship of our Executive Chairman, N. Chandrasekaran.”
Tata Sons in its press release said that it s interprets the ruling by the NCLT as demonstrating that the petitioners failed to make a convincing or compelling case that warranted a hearing on alleged mismanagement, oppression or other actions.
"Mistry has made many ill-advised and groundless allegations intended to besmirch the name of the Tata Group. Today's ruling by the NCLT 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 the NCLT’s decision brings this matter to a close," he added.
Tata Sons announced sudden removal of Mistry as the company's chairman on October 24 last year and brought back Ratan Tata as its interim chairman.
Following Tata Sons, other Tata Group companies like Tata Steel, Tata Consultancy Services (TCS), Tata Industries, among others announced to remove Mistry from their companies' boards.
Tata Sons later on in January 12 this year appointed TCS former managing director and chief executive officer N Chandrasekaran as its new executive chairman.