New Delhi: The National Company Law Appellate Tribunal (NCLAT) on Friday rejected appeals filed by two Mistry family firms, in effect allowing the 6 February shareholder meeting of Tata Sons Ltd to be held.
Cyrus Mistry’s family firms, Cyrus Investment Pvt. Ltd and Sterling Investment Corp. Ltd, approached the NCLAT as the National Company Law Tribunal (NCLT) did not restrain Tata Sons Ltd from holding a shareholders meeting on 6 February to oust Mistry as a director on the board.
NCLAT chairperson S. J. Mukhopadhaya said that there would be no interim relief, like a stay of the shareholder meeting, granted.
The two firms, in which Mistry has a majority shareholding, have the option to appeal to the Supreme Court. A detailed judgment on the appeals will be available by Tuesday.
The firms had sought a stay on the extraordinary general meeting and asked for an order restraining Tata Sons from taking any action to oust Mistry, who was removed as chairman on 24 October, from the board.
According to the firms’ petition before the NCLAT, a copy of which Mint has seen, orders delivered by the NCLT are “wrong both on fact and law and…set out a very bad precedent” on several counts, including by failing to give reasons for rejecting a stay on the 6 February meeting.
Tata Sons moved to remove Mistry as a director on the board after being requisitioned to do so by four Tata trusts.