The National Company Law Appellate Tribunal (NCLAT) on Wednesday expunged “disparaging” remarks made against Cyrus Mistry by the Mumbai bench of the National Company Law Tribunal (NCLT) in its July 2018 order.
The tribunal had then dismissed Mistry’s plea challenging his removal as the chief of the Tata group.
The two-member bench of the NCLAT on Wednesday said that such observations against Mistry and other respondents were “undesirable and based on extraneously sourced material not on record … It casts an impact on the reputation of the appellants and Cyrus Mistry... These remarks are not only disparaging but also wholly unsubstantiated by any document on record”.
Citing 11 paragraphs of disparaging remarks against Mistry, the NCLAT said, “Remarks made against the appellants Cyrus Pallonji Mistry and others stand expunged.”
Counsel for Mistry had submitted that he was aggrieved by certain observations and findings in the NCLT order which affected his reputation, even as it also “attacked” his integrity both professionally and personally.
“It is apt to notice some observations in the judgment dated July 9, 2018, passed by the tribunal are inappropriate and avoidable,” the NCLAT said.
The appellate tribunal further said that in its opening paragraphs of its judgment, The NCLT was not required to highlight the products of Tata Sons nor was required to appreciate its activities before deciding the case on merit.
“Sometimes, such observations or appreciation in favour of one or other party creates a wrong impression in the minds of the other party. The tribunal is required to appreciate the merits and demerits of the case and should desist from highlighting the merits of a product or virtues of a party or appreciating any action taken by a party to a case,” it said.