New Delhi: The National Company Law Tribunal (NCLT) on Wednesday dismissed a contempt petition filed by Cyrus Mistry's family companies against Tata Sons in relation of his removal from the post of Chairman of the company.


COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The bench, however, gave liberty to the Mistry family companies to file an affidavit within three days on the issue of Tata Sons holding EGM on February 6.


Pronouncing the operative part of the order, a division bench of NCLT said, "the contempt petition is dismissed."



Alleging violation of the tribunal's order in initiating steps to remove him from the board, two investment firms owned by the family by Cyrus Mistry had on January 11 filed a contempt application at NCLT against Tata Sons and its directors including Ratan Tata.


The bench was of the view that the action of Tata Sons did not amount to contempt of court.


In the application filed at the National Company Law Tribunal, Cyrus Investments Ltd and Sterling Investment sought an injunction against Tata Sons from "convening or holding of the EGM scheduled on February 6, 2017 or any other date or from transacting any business thereat".


It also sought punishment for Tata, other directors of Tata Sons and trustees of Sir Ratan Tata Trust and Sir Dorabjee Trust -- N A Soonawala, R K Krishnakumar and R Venkatramana -- with "simple imprisonment for a term which may extend to six months" or fine of Rs 2,000 or both.


The application alleged that the respondents have "committed a breach" of the NCLT order passed on December 22 by issuing a special notice on January 3, 2017 for the removal of Mistry as a director from the board of Tata Sons, "in clear violation of the order".


It claimed that the move to remove Mistry was against the order of NCLT which stated that the respondents will not "initiate any action or proceedings over this subject matter pending disposal of this company petition".


 


With PTI Inputs