Tata - Mistry Case: NCLAT To Hear Mistry Plea Against NCLT Order On Wednesday
The National Company Law Appellate Tribunal has said that it will hear Cyrus Mistry's appeal on the National Company Law Tribunal order in his case against Tata Sons on Wednesday, as the counsel for the conglomerate was not present today to put forth his arguments before the bench.
The two-member NCLAT has listed the matter for tomorrow.
Last month, the NCLT Mumbai had dismissed Mistry's case challenging his removal as Tata Sons chairman and alleging of rampant misconduct on part of Ratan Tata and the company's Board.
A special bench of the tribunal held that the Board of Directors at Tata Sons was "competent" to remove the executive chairperson of the company.
NCLT bench members B S V Prakash Kumar and V Nallasenapathy said that Mistry was ousted as chairman because the Tata Sons' Board and its majority shareholders had "lost confidence in him".
Mistry, who was the sixth chairman of Tata Sons, was ousted from the position in Oct. 2016. He had taken over as the chairman in 2012 after Ratan Tata announced his retirement. The Mistry family-owned Shapoorji Pallonji Group owns approximately 18 percent of Tata Sons, the holding company of the Tata Group.
Two months after his removal, Mistry's family-run firms Cyrus Investments Pvt Ltd and Sterling Investments Corp approached the NCLT as minority shareholders, against Tata Sons, Ratan Tata, and some other board members.
He also alleged 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 all of the above caused massive revenue loss for the group.