The Bombay High Court yesterday delivered a judgment in relation to the ₹41,832 crore representative suit filed against Tata Sons & Others..Much before Cyrus Mistry had initiated the battle against his former squad, six shareholders of Tata group companies had moved the Bombay High Court demanding damages for the loss in share values (to non-promoter shareholders) of various Group Companies following the (allegedly illegal) ouster of Mistry as Chairman of Tata Sons..The damages sought are for losses due to a drop in the share prices of eight Tata group companies since the market closing on October 24 last year, when Mistry was ousted, to December 6, 2016..The suit was filed as a representative one on December 7 by Pramod Premchand Shah, Kalpana Shah, Vinesh Shah and Jesal Bhansali under Order 1, Rule 8 of the Civil Procedure Code, 1908 against Tata Sons, its Directors, Tata Trusts and some of the Tata operating companies..In December last year, Justice S J Kathawalla had passed an order permitting the suit to be filed in a representative capacity. However, Justice S.C. Gupte has revoked this leave, which was granted last year, saying that a suit filed by few minority shareholders cannot be treated as a representative suit on behalf of all the non-promoter shareholders..In view of this judgment, the suit can no longer be carried out as a representative suit and the plaintiffs will now have to continue the suit in their personal capacity and the damages will be limited to their personal loss..P Chidambaram, Senior Advocate along with Shuva Mandal and Nitesh Jain, Partners of Shardul Amarchand Mangaldas appeared for Tata Sons. Karanjawala & Co acted as the co-counsel..Dinyar Madon, Senior Advocate appeared for the plaintiffs shareholders and Janak Dwarkadas appeared for Cyrus Mistry.
The Bombay High Court yesterday delivered a judgment in relation to the ₹41,832 crore representative suit filed against Tata Sons & Others..Much before Cyrus Mistry had initiated the battle against his former squad, six shareholders of Tata group companies had moved the Bombay High Court demanding damages for the loss in share values (to non-promoter shareholders) of various Group Companies following the (allegedly illegal) ouster of Mistry as Chairman of Tata Sons..The damages sought are for losses due to a drop in the share prices of eight Tata group companies since the market closing on October 24 last year, when Mistry was ousted, to December 6, 2016..The suit was filed as a representative one on December 7 by Pramod Premchand Shah, Kalpana Shah, Vinesh Shah and Jesal Bhansali under Order 1, Rule 8 of the Civil Procedure Code, 1908 against Tata Sons, its Directors, Tata Trusts and some of the Tata operating companies..In December last year, Justice S J Kathawalla had passed an order permitting the suit to be filed in a representative capacity. However, Justice S.C. Gupte has revoked this leave, which was granted last year, saying that a suit filed by few minority shareholders cannot be treated as a representative suit on behalf of all the non-promoter shareholders..In view of this judgment, the suit can no longer be carried out as a representative suit and the plaintiffs will now have to continue the suit in their personal capacity and the damages will be limited to their personal loss..P Chidambaram, Senior Advocate along with Shuva Mandal and Nitesh Jain, Partners of Shardul Amarchand Mangaldas appeared for Tata Sons. Karanjawala & Co acted as the co-counsel..Dinyar Madon, Senior Advocate appeared for the plaintiffs shareholders and Janak Dwarkadas appeared for Cyrus Mistry.
