MUMBAI: Prolonging the corporate boardroom tussle, Cyrus Mistry on Friday moved the National Company Law Appellate Tribunal (NCLAT) against the NCLT’s order and challenging his removal as chairman of Tata Sons.As per the Companies Act 2013, NCLT’s order can be challenged before the NCLAT. Accordingly, a petition was filed before the appellate tribunal against the July 9 order of NCLT’s Mumbai bench. Following technical verification, Mistry’s plea could be dismissed or admitted and a hearing date will be announced.
Last month, NCLT dismissed Mistry’s plea challenging his ouster from the Tata Group of companies and the allegations he put forth including rampant misconduct on part of Ratan Tata and the company’s board. However, after several months of proceedings, the Mumbai bench, led by B S V Prakash Kumar and V Nallasenapathy, ruled that Mistry was ousted as the Tata Sons’ Board as its majority shareholders “lost confidence in him.”
Mistry, the sixth chairman of Tata Sons, was drummed out of office in October 2016. And two months later, Mistry and his family firms – Cyrus Investments Pvt Ltd and Sterling Investments Corp – moved NCLT as minority shareholders, against Tata Sons, Ratan Tata, and some of its board members.In his pleas, Mistry made damning allegations that Tata Trust chairperson Ratan Tata and trustee N Soonawala interfered with the day-to-day operations of the group companies, they acted as shadow directors, and above all caused massive revenue loss for the group.
Mistry also contended that the articles of association of Tata Sons by structure was biased against the rights of minority shareholders and thereby oppressive, which the Tatas have dismissed. Mistry took over the reins in December 2012 after the group patriarch Ratan Tata demitted office on attaining 70 years. Tata Group denied all charges and said Mistry was removed due to underperformance.