Mumbai, Apr 18: Cyrus Mistry will now approach the National Company Law Appellate Tribunal (NCLAT) after the National Company Law Tribunal turned down the request for waiver to Mistry family firms from minimum shareholding requirement to file mismanagement petition against Tata Sons.
The Mistry family firms had filed a mismanagement and oppression of minority shareholders against Tata Sons Ltd after Cyrus Mistry was removed as chairman of Tata Sons on October 24. Mistry was subsequently removed from the board of Tata Sons.
A two-member NCLT bench on Monday also dismissed the main petition of Mistry family firms. Cyrus Investments Pvt Ltd and Sterling Investments Pvt Ltd had urged the tribunal to waive the requirement that shareholders hold at least 10 per cent shares of a firm to be qualified to file a petition alleging mismanagement and oppression. ALSO READ: Cyrus Mistry fired! Here’s all you need to know about who he is and why TATA said tata to its Group Chairman
The NCLT on March 7 had ruled that the petition was not maintainable as the two firms did not meet this requirement. The two Mistry firms hold 18.4 per cent ordinary shares in the Tata Sons but the ownership comes down to 2.17 per cent if preference shares are taken into account.
The final NCLT order will be available on Friday.
Tata Sons welcomed the tribunal order and expressed hope that the order would bring to an end the ‘vexatious campaign against the company, the Tata Trusts and Ratan Tata’.