Mistry case: Now, Ratan Tata moves SC over NCLAT order
New Delhi, January 3
Ratan Tata today filed a petition in the Supreme Court seeking to quash a company law appellate court order directing Tata Sons to rehire the chairman it had fired in 2016, saying the judgment was “wrong, erroneous and contrary to the record of the case”.
His petition is separate from the one filed by Tata Sons Ltd, the holding company of the $110-billion salt-to-software conglomerate, in the Supreme Court on Thursday that sought a stay on the National Company Law Appellate Tribunal’s December 18, 2019 order to reinstate Cyrus Mistry as the chairman.
Ratan Tata, who is chairman emeritus and a shareholder of Tata Sons, in the petition said the NCLAT judgment was wrong as it treats Tata Sons as a two-group company.
Mistry, he contended, was made the Executive Chairman of Tata Sons in a purely professional capacity and not as a representative of the Shapoorji Pallonji Group, which holds 18.4% stake in Tata Sons.
Tata Trusts, of whom Ratan Tata had been a chairman for many years, holds 65.89% stake of Tata Sons.
The petition said the NCLAT order wrongly suggests that “someone from the SP Group had been a director because of some entrenched right or convention”.
“This is untrue and contrary to the records and the articles of association of Tata Sons, which are undisputed and binding on the shareholders, including the SP Group,” he contended.
He said Mistry’s leadership “was lacking” in “his reluctance to timely and meaningfully disassociate himself from his family business after he became the Chairman of Tata Sons and address any conflict in this regard, which was a condition precedent to his appointment as Chairman of Tata Sons”.
Mistry, he alleged, “concentrated power and authority in his own hands” and “Board members were being alienated on matters relating to Tata Operating Companies where Tata Sons had huge financial exposure and the Board of Tata Sons had to contend with such decisions being cast upon it as fait accompli”.
The chairman emeritus targeted Mistry for the handling of the failed partnership with Japan’s DoCoMo saying it showed his “complete obstinacy” as he attempted to resist complying with the legal obligations further. — PTI
Seeks quashing of verdict
- Ratan Tata, who is chairman emeritus and a shareholder of Tata Sons, in the petition said the NCLAT judgment was wrong as it treats Tata Sons as a two-group company
- Mistry, Tata contended, was made the Executive Chairman of Tata Sons in a purely professional capacity and not as a representative of the Shapoorji Pallonji Group, which holds 18.4% stake in Tata Sons
NCLAT reserves ruling on RoC plea
- The Ministry of Corporate Affairs on Friday told the company law appellate court that it did not commit any illegality in granting permission to convert Tata Sons into a private company
- The submission was made before the NCLAT during the course of hearing on a petition filed by Registrar of Companies (RoC) that seeks modifications in the tribunal’s December 18, 2019 judgment
- The NCLAT, however, reserved its order on the RoC’s petition and said it will clarify that the December 18 judgment does not cast aspersions on the RoC and indicated its order is likely to come on Monday next week
