NCLT Dismisses Cyrus Mistry’s Plea Against His Ouster From Tata Sons

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New Delhi: The National Company Law Tribunal (NCLT) has dismissed all charges by the group’s former chairman Cyrus Mistry challenging his ouster from Tata Sons, the holding company of India’s largest conglomerate and its corporate governance standards. This has come as a major victory for $100-bilion Tata Group and its chairman emeritus Ratan Tata.

In an oral order, a Mumbai division bench of NCLT presided by BSV Prakash Kumar and V Nallasenapathy dismissed the petition filed by the Mistry family’s investment firms, stating it found no merit in the case.

The bench said that Mistry was removed as chairman of Tata Sons because its shareholders had lost trust in him. The tribunal rejected all of Mistry’s allegations and ruled that the parent of India’s largest conglomerate had the right to remove him as its chairman.

“We have not found any purported merit or issues raised by the minority shareholder in his petition under the Section 241 and 242 of The Companies Act, 2013,” the NCLT bench ruled in a packed courtroom. It also found no merit in Mistry’s argument that Ratan Tata and Tata Sons trustee NA Soonawala interfered in the governance of Tata Sons.

Mistry, whose family is the single-biggest corporate shareholder in Tata Sons, was named group chairman in November 2011 and took over in December 2012 after the retirement of Ratan Tata. On October 24, 2016, the board of Tata Sons dismissed him as chairman and made Ratan Tata interim chairman. The Tata Trusts , a collection of philanthropic trusts, own 68% of Tata Sons.

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