Business

NCLT Rejects Cyrus Mistry's Plea Against Tata Sons

JAVED SAIFI | 0
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| July 9 , 2018 , 13:35 IST

The National Company Law Tribunal (NCLT) on Monday dismissed Cyrus Mistry plea against Tata Sons alleging operational mismanagement and oppression of minority shareholders. The legal corporate battle was going on for the last 20 months.

Cyrus Mistry is the former chairman of Tata Sons. In his plea, he claimed that his removal was a result of mismanagement by the board’s trustees and oppression of minority shareholders of the group.

 

A two-member NCLT bench of B.S.V. Prakash Kumar and V. Nallasenapathy found no merit in Mistry’s complaint and allegations filed against Tata sons. As per the bench, the board was competent to remove him from the post of the Chairman as he made the issue public.

Mistry was removed from his post on October 24, 2016, by the Tata Sons board.

Also Read: Bloody Aftermath Of 'Cyrus Mistry Vs Tata' Could Have Been Avoided: Nirmalya Kumar

Mistry’s family owns about 18 percent stakes in Tata sons with voting rights of only 4 percent.

Two weeks ago, Mistry had written a letter to the directors of Tata Sons to get the information from the board and questioned new chairman N Chandrasekharan for the sale of his telecom arm to Airtel and Tata Steel acquisitions of a debt-driven company and the agreement with Tthyssenkrupp and others.

Tata Sons is the holding company of Tata groups. On February 6, 2017, Cyrus Mistry was also removed from the board of directors of the company.