SC to decide on Cyrus role in Tata Sons
The Supreme Court on Friday has agreed to hear a plea from Cyrus Mistry seeking representation on the board of Tata Sons.
The Pallonji group has in its petition sought proportionate representation on the board of Tata Sons and representation on all the committees formed by the board. It was argued that the National Company Law Appellate Tribunal (NCLAT) has not granted certain reliefs to put an end to the alleged acts of oppression and mismanagement.
Following the cross-appeal, a bench of Justices A.S. Bopanna and Hrishikesh Roy tagged the plea with the petition of Tata Sons. The latter had challenged the NCLAT order of December which restored Mistry as the executive chairman of Tata Sons. In January, the apex court had stayed the order.
The hearing of Friday was held by video conference.
“Issue notice. Tag with Civil Appeal Nos...and connected matters, if any. In the meantime, pleadings be completed by the parties within a period of four weeks from today. List the matter(s) thereafter,” the bench said in its order.
Mistry, who was removed as the chairman of Tata Sons in 2016, is seeking representation in the holding company in proportion to the 18.37 per cent stake held by his family, the cross-appeal said.
“The NCLAT by limiting the relief granted to the appellants (Mistry and others) in connection with their prayer for board representation, only to the remainder of Cyrus Mistry’s tenure, has not secured the interests of the Shapoorji Pallonji group from any prejudicial conduct in the future. Therefore, it was incumbent on this NCLAT to have granted proportionate representation that would have ensured that the interests of the SP Group are protected in future,” the appeal said.
In the petition, Mistry has described the group’s relationship with the Tatas as a quasi-partnership relationship of a vintage of over 60 years, holding 18.37 per cent in the equity share capital of Tata Sons and whose stake is now worth over Rs 1.5 lakh crore”.
The Mistry group firm in the petition has sought remedies for many anomalies in the NCLAT order, including about not looking at alleged oppression of minority shareholders as well as converting Tata Sons into a private limited company as a post facto move.