National Company Law Tribunal (NCLT) on Thursday said that it won't consider interim relief to Cyrus Investments Co alleging mismanagement and oppression in Tata Sons.
New Delhi: National Company Law Tribunal on Thursday refused to hear the plea for interim relief of Cyrus Investments company pending disposal of a petition filed by family-owned companies of Cyrus Mistry, the ousted Chairman of Tata Sons, alleging bad practices, oppression and mismanagement in the holding company.
A division bench of NCLT comprising B S V Prasad Kumar (Member-Judicial) and V Nallasenapathy (Member-Technical) decided to finally hear the petition filed by Cyrus Investments Pvt Ltd and Sterling Investments Corporation Ltd, on January 31 and February 1 next year, saying it would not consider granting interim relief now or entertain interim proceedings.
The bench asked Respondent no 11, Cyrus Pallonji Mistry, to file a reply to the petition within a week from today.
It also directed Tata Sons and other respondents to file a reply within 15 days, after Mistry files a reply. They have been asked to respond to Mistry's reply and the petition.
Cyrus Mistry on December 20 took the legal route in his fight against the Tatas by filing suit in National Company Law Tribunal against Tata Sons.
The petition was against oppression and mismanagement of Tata Sons under Section 241 of the Companies Act, the sources added.
The first hearing by NCLT on the petition is slated for 22 December, they said.
While resigning from the boards of the Tata group firms yesterday, Mistry had launched a scathing broadside against Ratan Tata and vowed to shift his fight to a "larger platform".
"Having deeply reflected on where we are in this movement for cleaning up governance and regaining lost ethical ground, I think it is time to shift gears, up the momentum, and be more incisive in securing the best interests of the Tata Group," Mistry had said.
He further said that with this thought in mind, he "decided to shift this campaign to a larger platform and also one where rule of law and equity is upheld".
Mistry, who had continued to be on boards of operating companies even after his ouster as chairman of the holding company Tata Sons on October 24, had again raked up "breakdown of governance" and questionable dealings including release of more funds to airline venture Air Asia under interim chairman Ratan Tata despite "findings of fraud and wrong-doing".
His resignation came ahead of five Tata companies -- Indian Hotels, Tata Steel, Tata Motors, Tata Power and Tata Chemicals -- calling extraordinary general meetings starting from today to oust him as a director on company boards after Ratan Tata, a scion of the conglomerate's founding family, replaced him as chairman of the group's holding company.
With PTI Inputs