Cyrus Mistry firms move NCLT seeking transfer of case against Tata Sons
New Delhi: Mistry investment firms moved the National Company Law Tribunal (NCLT) on Tuesday seeking transfer of the case against Tata Sons Ltd for alleged mismanagement and oppression of minority shareholders.
The transfer was sought from the Mumbai branch of NCLT to an appropriate bench at the Delhi forum.
Under a 21 September order passed by the National Company Law Appellate Tribunal (NCLAT), the family firms were directed to approach the Mumbai bench of the NCLT that would hear arguments and dispose of the case in three months.
The NCLAT bench headed by chairperson S.J. Mukhopadhaya had granted the investment firms, namely Cyrus Investments Pvt. Ltd and Sterling Investments Pvt. Ltd, a waiver of the minimum shareholding requirement (of 10%) for suing Tata Sons for alleged mismanagement and oppression of minority shareholders.
The pleas were dismissed as not maintainable.
This was seen by legal experts as a partial victory for the Mistry family firms.
The two investment firms, controlled by the family of ousted Tata Sons chairman Cyrus Mistry, had appealed to NCLAT in April against separate NCLT orders dismissing both petitions.
While the two Mistry firms did own a combined 18.4% of ordinary equity shares of the Tata group holding firm, their holding fell to 2.17% when both equity and preference shares were taken into account.
Mistry was ousted as Tata Sons chairman on 24 October 2016 and was also removed subsequently as director on the board of the Tata group holding company.
The case is likely to be heard on 5 October.