Mumbai, Apr 17: The National Company Law Tribunal (NCLT) will pronounce on Monday its ruling on Mistry family firms seeking waiver from the shareholding requirement to file a petition against Tata Sons Ltd. The tribunal on March 7 had ruled that two Mistry firms – Cyrus Investmenrts Pvt Ltd and Sterling Investments Pvt Ltd were not qualified as they do not meet the criteria of shareholders holding 10 per cent equity to be qualified to file such a petition.
Both the Mistry firms own a 18.4 per cent ordinary equity shares in the Tata group company but the holding comes down to 2.17 per cent if the preference shares are taken into account. Under the new Companies Act, shareholders should hold 10 per cent equity to file a petition. IN PICS: Ratan Tata vs Cyrus Mistry: A timeline of the battle for the throne!
Janak Dwarkadas representing Cyrus Mistry
alleged that Tata Group was not a professionally managed company and the company structure is made in a way that majority nominated directors can take a decision.
Representing Tata Sons, Abhishek Manu Singhvi said waiver could be granted only if it is of national or public interest and the petitioners do not have any other remedy. But this has not been established by Mistry firms. ALSO READ: Cyrus Mistry fired! Here’s what led to the ouster of Cyrus Mistry from Tata Sons
Tatas and Mistry firm spat began on October 24 after the unceremonious exit of Cyrus Mistry as Tata Sons chairman. Mistry was later removed from all the other company boards.