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.