Court allows Cyrus Mistry's waiver plea

The National Company Law Tribunal has been directed to decide on Mistry's claim within 90 days

Samar Srivastava
Updated: Sep 21, 2017 02:45:43 PM IST

After studying law I vectored towards journalism by accident and it's the only job I've done since. It's a job that has taken me on a private jet to Jaisalmer - where I wrote India's first feature on fractional ownership of business jets - to the badlands of west UP where India's sugar economy is inextricably now tied to politics. I'm a big fan of new business models and crafty entrepreneurs. Fortunately for me, there are plenty of those in Asia at the moment.

Cyrus Mistry, former chairman, Tata Sons
The National Company Law Appellate Tribunal (NCLAT) allowed a petition by two investment firms controlled by the Mistry family, seeking a waiver in filing a case of oppression and mismanagement against Tata Sons.

Earlier, the National Company Law Tribunal (NCLT) in Mumbai had refused to grant a waiver saying that since the two firms – Sterling Investments and Cyrus Investments – did not have more than a 10 percent holding in Tata Sons, they could not file for oppression and mismanagement.
A petitioner is required to hold at least one-tenth of the issued share capital of a company or represent 10 percent of the total number of members to take up such a case at the NCLT. Sterling and Cyrus Investments each hold 9.2 percent of Tata Sons.
As this was a legal prerequisite, the two firms had moved the NCLAT for a waiver, which has now been granted. It directed the NCLT to hear the case on its merits and decide the matter within 90 days.
“The ruling of the NCLAT is a welcome vindication of what we have stood for and the values for which we are pursuing the petition against oppression and mismanagement of Tata Sons Ltd.,” a statement from the office of Cyrus Mistry said.  

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