Tata-Mistry Case: NCLAT Dismisses RoC Plea On Modification Of Order
The National Company Law Appellate Tribunal on Monday dismissed the petition filed by the Registrar of Companies and refused to modify its order passed in the Tata-Mistry case.
In its order dated Dec. 18, NCLAT ruled that Cyrus Mistry’s removal as chairman of Tata Sons Pvt. Ltd. was illegal and reinstated him to the post. It also questioned Tata Sons’ conversion to a private company. Tata Group companies, led by Chairman Emeritus Ratan Tata, have challenged the order in the Supreme Court, even as Mistry said he doesn’t want the job back.
A two-member bench, headed by Chairman Justice SJ Mukhopadhaya, dismissed the plea filed by RoC. NCLAT further said that its Dec.18, 2019, judgment has no aspersions cast against it. "There is no ground to amend judgment dated December 18, 2019," said NCLAT.
In its plea, RoC—under the corporate affairs ministry—had sought to be impleaded as a party in the two petitions and deletion of words "illegal" and "with the help of the RoC" used by the NCLAT in its 172-page Tata-Mistry order.
The appellate tribunal had termed the appointment of Natarajan Chandrasekaran, as "illegal" following Mistry's sacking. It had also directed the RoC to reverse Tata Sons' status from a 'private company' to a 'public company'.
Tata Sons was initially a ‘private company' but after insertion of Section 43A (1A) in the Companies Act, 1956, on the basis of average annual turnover, it assumed character of a deemed 'public company' with effect from Feb. 1, 1975, the order said.
Meanwhile, Cyrus Mistry on Sunday ruled out pursuing chairmanship of Tata Sons or any other executive positions at group entities but asserted that he is interested in a board seat at the holding company.
Mistry in a late Sunday evening public statement said that he is "walking the talk" to uphold corporate governance, and this is not a quest for position or power and he "will not be pursuing the executive chairmanship of Tata Sons, or directorship of TCS, Tata Teleservices or Tata Industries".