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Mumbai: The National Society Law Tribunal (NCLT) today rejected the pleas of Cyrus Mistry challenging his withdrawal as president of Tata Sons as well as the allegations of rampant misconduct. Ratan Tata and the Board of the company. According to the special court of Tata Sons, the board of directors of Tata Sons was "competent" to dismiss the company's executive chairman.
BSV Prakash Kumar and V Nallasenapathy, members of NCLT's court, stated that Mistry had been removed from office. The board of directors and its majority shareholders had "lost confidence in him".
Upon reading the operative part of the judgment, the court declared that "he (Mistry) had transmitted crucial information about the Tata companies to the Department of Income Tax." He then stated: "The dismissal of Cyrus Mistry as executive chairman was due to the fact that the idence and not because they thought it would cause discomfort to Ratan Tata, Soonawala (N Soonawala, the trustee of the group), and to other respondents …
"The Board has jurisdiction to dismiss an Executive Chairman. Mistry was dismissed from the position of director because he has, of course, sent information about the company to the IT department, the press and made public the board and the trust.
Cyrus Mistry (left) Ratan Tata, Reuters
The Tata group had argued that the law clearly allowed the removal of a president and a director and that Mistry was dismissed by a majority of seven out of nine, Mistry did not vote for his dismissal and another abstainer.
The bench in his order today was in agreement with the arguments of the Tata group.
"We found no basis in the argument that Ratan Tata, Soonawala would interfere, or that their conduct was prejudicial to the company's interest. precedes, we consider that the dismissal of Mistry does not call for an action under Article 241 of the Companies Act, "he added. make a request to the NCLT to inquire whether the affairs of the corporation are conducted in a manner prejudicial to the public interest, or in an oppressive manner to any member of that corporation.
The court dismissed Mistry's allegations against Tata Sons Board and Ratan Tata for mismanagement of business and oppression of minority shareholders.
He also dismissed all allegations of misconduct in the governance of a part of the group concerning Air Asia, Nano and Aircel, and a break-up of the corporate government.
The bench stated that he had found no basis in Mistry's allegations and concluded that the Board was acting in accordance with the Companies Act of 2013.
After the court Mistry's office has published a statement that Mistry "will continue to strive to ensure good governance and the protection of the interests of minority shareholders and all stakeholders of Tata Sons." against the brutal and deliberate rule of the majority. "
"The decision is in line with the previous position of the court: an appeal on the merits will be continued."
Not only the facts that were under study, but also the subsequent facts and developments who continue to testify to oppression and mismanagement will be examined and will be pursued with full knowledge of the facts. 19659020] "We have always been fighting in principle to restore the Tata Group to its days of high quality, best practices and, above all, the best value systems." In this journey, as difficult as it may seem, as As shareholders, who have always supported the Tata Group, it is incumbent on us to protect the Tata Group against those who destroy value and make the Group vulnerable to eternal forces.
Welcoming the order, the President of Tata Sons N Chandrasekaran hoped that "an end will be given to the judgment of NCLT, by all concerned in the best interests of companies, shareholders, and the public." The judgment only reaffirmed and confirm that Tata Sons and its operating companies have always acted fairly and in the best interest of their stakeholders, "he said in a statement. He added:
Under the Companies Act 2013, an order of NCLT can be challenged before the National Companies Appeal Tribunal (NCLAT).
Mistry, who was The sixth president of Tata Sons was ousted from the post in October 2016. He took the presidency in 2012 after the retirement of Ratan Tata.
Two months later, Mistry's family companies, Cyrus Investments Pvt Ltd and Sterling Investments Corp. approached the NCLT as minority shareholders, against Tata Sons, Ratan Tata and other board members d & # 39; administration.
Mistry's main contention was that its withdrawal was not in accordance with the Companies Act and that there was mismanagement of the business.
He also alleges that Tata Trust's president, Ratan Tata, and trustee N Soonawala interfered with the day-to-day activities of the group companies, which they acted as ghost directors, and all that precedes has caused mbadive losses of income.
The Tata group dismissed all charges and declared that Mistry had been struck off because the board had lost confidence in him.
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