Cyrus Mistry responds to NCLT on counter allegations by Tata Sons
Currently, the NCLT in Mumbai is hearing the petition filed by Mistry�s investment companies
Days after National Company Law Tribunal (NCLT) rejected a petition filed by Tata Sons' ousted chairman Cyrus Mistry, he has now replied to the tribunal on the 'counter-allegations' made by the Tata Sons'.
In an affidavit filed by Mistry’s investment companies to the NCLT’s Mumbai bench, he replied to the NCLT after Tata Sons had filed an over 200-page affidavit with the NCLT earlier in January, rebutting charges levelled against it by the investment companies of Mistry.
Currently, the NCLT in Mumbai is hearing the petition filed by Mistry’s investment companies
In its affidavit, Tata Sons’ alleged that Mistry had under-performed as the Chairman of Tata Sons, which led to a decline in dividend payments to Tata Trusts. It also pointed out that the Board of Tata Sons had lost confidence in Mistry.
Earlier, Tata Sons had been served with a petition filed before the NCLT by Mistry’s investment companies under Sections 241 and 242 of the Companies Act. However, Tata Sons also filed legal notice to Mistry, alleging breach of confidentiality and passing on sensitive information to his family-controlled companies.
On January 18, NCLT had dismissed a petition filed against Tata Sons by Mistry for calling a shareholders’ meet to remove him as a Director on the company’s Board. The petition was filed by Mistry’s investment company -- Cyrus Investment Private Limited.
Tata Sons’ Board ousted Mistry on October 24, 2016, as its Chairman and appointed Ratan Tata as Interim Chairman. However, Mistry still remains a Director on the board of the holding arm of the $100 billion-plus group.
Tata Trusts hold 66 percent stake in the holding company of the Tata Group, with Mistry’s family holding over 18 percent interest.
The petition had also sought an injunction against the proposed extra-ordinary general meeting (EGM) which is said to have been called on February 6, 2017. The petition alleged that the company had violated NCLT’s order dated December 22, 2016, as it called for an EGM by issuing a special notice on January 3, 2017.
In response to the petition, Tata Sons that time had said: “There is no contempt. We will make our submissions to the NCLT.”