Tata Sons today said the National Company Law Tribunal’s order dismissing Cyrus Mistry’s allegations “vindicates the position of Tata Trusts and Tata Sons”.
The NCLT’s Mumbai bench found no merit in the allegations of operational mismanagement and oppression of minority shareholders by Mistry-owned firms against Tata Sons and 20 others in December 2016, after he was ousted from the position of the company’s chairman.
“The judgement has only re-affirmed that Tata Sons and its operating companies have always acted in a fair manner and in the best interest of its stakeholders,” N Chandrasekaran, chairman of Tata Sons, said in a statement, welcoming the ruling. He added that the company will continue to remain transparent and will follow the prescribed norms of corporate governance.
Tata Sons hopes that a finality will be given to the judgement of NCLT Mumbai by all concerned in the larger interest of companies, the shareholders and the public.N Chandrasekaran, Chairman, Tata Sons
The dispute stems from Mistry’s removal as Tata Sons chairman in October 2016 and later as a director. In March 2017, the NCLT had ruled that the Mistry firms are not eligible to pursue the allegations but the appellate tribunal later granted Mistry the right to proceed and sent the case back to NCLT.
Finally, the National Company Law Tribunal today found no merit in Mistry’s allegations and ruled that the parent company had the right to remove Mistry from his position at the time. It also dismissed Mistry’s argument that Ratan Tata and NA Soonawala interfered in Tata Sons’ governance.
Mistry, in a statement issued after the order, said that he will continue to protect minority shareholders from the majoritarian rule at Tata Sons.
“An appeal on merits will be pursued...and subsequent facts and developments that continue to evidence oppression and mismanagement will be under scrutiny,” Mistry had added.