Cyrus Mistry moves NCLAT in appeal against his ouster from Tata Sons

Cyrus Mistry moved the National Company Law Appellate Tribunal, today, in an appeal against the order of the NCLT, which dismissed his plea challenging his removal as the Executive Chairperson of Tata Group’s holding company in October 2016.

Subsequently, Mistry was also removed as chairman of various Tata group companies and the director of Tata Sons.

Mistry’s petition challenging his sacking from the Tata Sons was dismissed by the Mumbai Bench of the National Company Law Tribunal on July 9.

Mistry had filed a suit against Tata Sons, Ratan Tata, and several others under Sections 241 and 244 of the Companies Act, 2013 alleging oppression and mismanagement in Tata Sons. Mistry had alleged several irregularities in dealings with Tata Teleservices and violation of Insider Trading Rules in the Tata Group companies by Ratan Tata and other trustees of the Tata Trust.  

Mistry also claimed the existence of fraudulent transactions to the tune of Rs. 22 crores entered into by Air Asia India with non-existent parties in India and Singapore.

Mistry’s removal was also argued to be in violation of the Articles of Associations of the Company.

Rejecting all allegations made by Mistry and his company Sterling Investments, the NCLT held that the Board of Directors were competent to remove him from the post and that no selection committee was required to remove the Executive Chairman.

The NCLT also ruled Tata Sons can’t be prevented from becoming a private company and found no merit in arguments relating to mismanagement in Tata Group companies.

The matter is likely to be listed for hearing before the NCLAT next week.