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Cyrus Mistry, who was the sixth president of the Tata Sons, was ousted from his post in October 2016.
Mumbai: The National Company Law Tribunal (NCLT) has postponed today on July 9 his judgment on a petition filed by Cyrus Mistry contesting his ouster as chairman of the group Tata Sons. NCLT Mumbai 's special court, Prakash Kumar and V Nallasenapathy, was scheduled to make its order in the case today but sent it back to July 9 because the judgment was not ready.
Mistry, in the application filed under the Companies Act, claimed that his dismissal was due to mismanagement by the trustees of the board and the oppression of the minority shareholders of the group.
He took the lead of Tata Sons in 2012 after Ratan Tata announced his retirement. Mistry, who was the sixth president of the Tata Sounds, was ousted from the position in October 2016. Two months later, Mistry and its family-investing firm, Cyrus Investments, approached the NCLT, as a "cashier." minority shareholders, against the company monolith and others including Ratan Tata alleging oppression and mismanagement.
In his plea, Mistry baderted that his dismissal as president was without reason and amounted to the majority shareholders' removal of the minority's right to ask questions about matters concerning society. According to the plea, Mistry was dismissed five months later as the director of Tata Sons' board of directors for approaching NCLT.
The Tata group refuted and stated that the withdrawal of Mistry was due to the fact that the board of directors had lost confidence in him. He (Mistry) intentionally and in bad faith disclosed sensitive and confidential information causing a loss of market value of Tata Group.
He was appointed at the request of Tata Trusts and his transfer can not be questioned by minority shareholders, the group's attorney, Abhishek Manu Singhvi, having pleaded in court. The Tata group argued that the law clearly authorizes the removal of a president and a director and Mistry was dismissed by a majority of 7 out of 9, Mistry having not voted for his dismissal and another official abstaining.
Mistry's first allegation was that his dismissal as chairman and then director of the Tata Sounds Board of Directors resulted from the oppression of the promoters, who are in turn owners of Tata Trusts who holds more than 68% of Tata Sons shares. The second part of the plea dealt with the alleged mismanagement by Tata Sons Board and Ratan Tata, which caused a loss of income for the group
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