Tribunal’s observation is based on the arguments put forward by the counsel for Tata Sons.
Mumbai: In a setback to Cyrus Mistry, who was unceremoniously ousted as chairman of the Tata Sons, the National Company Law Tribunal on Monday said the petition filed by the investment firms of Mr Mistry against Tata Sons alleging oppression and mismanagement of company is not maintainable.
The Tribunal’s observation is based on the arguments put forward by the counsel for Tata Sons saying that only those minority shareholders holding minimum 10 per cent stake in the company can file such a petition before the Tribunal.
While the Mistry family owns 18.5 per cent stake in Tata Sons, the latter argued that the Mistry family’s stake in Tata Sons would come down to less than three per cent if preference shares are taken into consideration.
However, the Tribunal posted the matter for hearing on Tuesday to decide whether the requirement of minimum 10 per cent stake could be waived-off.
“The petitioners have failed to convince the court that the application is maintainable. However, instead of dismissing the petition, the court will hear the matter,” said NCLT member B.S.V. Kumar on Monday.
Challenging the ouster of Mr Mistry, as the chairman of Tata Sons, Cyrus Investments Pvt Ltd and Sterling Investment Corporation Pvt Ltd owned by the Mistry family had filed a petition before the NCLT alleging mismanagement and the oppression of minority shareholders by Tata Sons, Ratan Tata and other directors of the holding company. The petitioners have also filed a relief application requesting the Tribunal to waive off the clause requiring minimum 10 per cent shareholding by a minority shareholder.
Under the Companies Act 2013, only members holding not less than one tenth of the issued share capital of the company or members representing not less than one tenth of the total number of minority shareholders are eligible to move an application before NCLT seeking relief.