An apex corporate tribunal on Monday dismissed a plea filed by Cyrus Mistry’s investment companies to waive off a regulatory bar on them, so that they can continue their legal suit against the Tata Sons. Besides, the main petition which was filed against Tata Sons was also rejected.
The National Company Law Tribunal (NCLT) here dismissed the plea filed by Mistry’s investment companies — Cyrus Investment and Sterling Investment Corp — the order on which will be released on Friday, April 21. Under the current rules, only a shareholder with more than 10 per cent effective shareholding can file a minority interest petition with the NCLT.
However, the Companies Act empowers the NCLT to waive off this requirement for a petitioner to hold at least 10 per cent of the total issued share capital of the company to qualify for filing a minority interest petition.
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The NCLT had ruled against the maintainability of the petition filed against Tata Sons, which cited governance lapses and compromise of minority shareholder interests after Mistry was ousted as Chairman of the holding company of the industrial conglomerate.
On October 24 last year, Tata Sons’ Board ousted Mistry as its Chairman and appointed Ratan Tata as Interim Chairman.