NCLT defers verdict on Cyrus plea
The National Company Law Tribunal (NCLT) on Wednesday deferred to July 9 its verdict on a dispute between Cyrus Mistry and Tata Sons.
- Published 5.07.18
Mumbai: The National Company Law Tribunal (NCLT) on Wednesday deferred to July 9 its verdict on a dispute between Cyrus Mistry and Tata Sons.
NCLT Mumbai's special bench of B.S.V. Prakash Kumar and V. Nallasenapathy was expected to deliver its order on Wednesday but adjourned it to July 9 as the judgment was not ready. Two Mistry firms - Cyrus Investments and Sterling Investments - had filed a petition in the NCLT against Tata Sons citing mismanagement and the oppression of shareholders.
Mistry had taken over as the chairman of Tata Sons in 2012 and was ousted from the position in October 2016.
Mistry in his plea claimed that his removal as chairman was without reason and amounted to the majority shareholders suppressing the right of the minority to ask questions about matters involving the company.
However, the NCLT, in a March 6, 2017 order, had held that the claims made by Shapoorji Pallonji Group companies, were not maintainable as they did not meet the minimum shareholding threshold of 10 per cent of issued share capital under Section 244 of the Companies Act, 2013.
The Mistry family holds more than 18 per cent in Tata Sons. However, the Tatas have argued that their stake after accounting for preference shares was less than 3 per cent. A shareholder must own at least one-tenth of the issued share capital to move the tribunal on such matters.