Relief to Tatas as NCLT rejects Mistry firms’ plea

Mumbai, January 18 

The National Company Law Tribunal today dismissed a contempt petition filed by two Cyrus Mistry family companies against Tata Sons and its directors, alleging violation of NCLT directives in taking steps to remove him from the Board of Tata Sons.

Pronouncing the operative part of the order, a division Bench of NCLT said, "The contempt petition is dismissed." The Bench was of the view that the action of Tata Sons did not amount to contempt of court.

In their petition, Cyrus Investments Ltd and Sterling Investment had also sought injunction against the Tata Sons barring them from "convening or holding of the EGM scheduled for February 6, 2017 or any other date or from transacting any business thereat."

The Bench, however, gave liberty to the Mistry family companies to file an affidavit within three days on the issue of Tata Sons holding EGM on February 6.

Tata Sons was also asked to file a rejoinder, if any, three days thereafter.

NCLT kept this matter for hearing on January 31 and February 1 when the main petition filed earlier by the two Mistry companies against Tata Sons would be heard.

The earlier petition had challenged Mistry's removal as the chairman of Tata Sons alleging bad practices, oppression and mismanagement in the holding company.

NCLT, on December 22 last year had refused interim relief. Today, the tribunal clubbed the issue of holding EGM of February 6 along with the hearing of the main petition. — PTI