Image: Vivek Prakash / Reuters
The National Company Law Tribunal (NCLT) dismissed a contempt petition filed by Cyrus Mistry’s family firms against Tata Sons on Wednesday.
Shapoorji Pallonji (SP) Group firms – Cyrus Investments and Sterling Investment – had brought a contempt plea against the flagship holding company of the salt-to-software Tata Group, protesting against the company’s move to call an extraordinary general meeting of shareholders to evict Mistry as a director on the board of the firm.
On October 24, Mistry was sacked as Tata group chairman and a war of words, characterized by allegations and counter-allegations between both camps ensued. The matter finally reached the NCLT in December when Mistry decided to step down from the boards of group operating companies of the conglomerate.
While the petition alleging oppression of shareholders and mismanagement against the directors of Tata Sons and trustees of Tata Trusts is pending before the NCLT (the next hearing is scheduled for January 31), Mistry’s family firms brought the contempt plea earlier this month when it was reported that Tata Sons will hold the EGM to decide on Mistry’s fate as director of the company on February 6.
The tribunal held that Tata Sons’ actions didn’t amount to contempt of court and directed Cyrus Investments and Sterling Investment to file a fresh affidavit in support of the original petition that they had filed before the NCLT, to include their reservations against the Tata Sons EGM that has been called.