The NCLAT on Thursday dismissed two petitions filed by ousted Tata Sons Chairman Cyrus Mistry on maintainability pleas against the company and waiver in the filing criteria, saying that his company did not qualify for the waiver, TV news reports said. However, the NCLAT has granted a waiver to the Mistry firms from minimum shareholding criteria following which the investment firms can move to NCLT Mumbai and argue the case.
The National Company Law Appellate Tribunal (NCLAT) rejected the first plea by Cyrus Mistry saying that his investment firms did not have required share-holding to bring charges of mismanagement and oppression. The Companies Act mandates that a petitioner should hold at least one-tenth of the issued share capital of a company or represent 10% of the total number of members to file cases alleging mismanagement and oppression of minority shareholders.
Cyrus Mistry firms own 18.4% of ordinary equity shares, but their share-holdings fall below 10% when preferential shares are taken into account. Cyrus Mistry firms hold merely 20,000 preference shares of the group.
A bench headed Chairperson Justice S J Mukhopadhaya pronounced the order.
The NCLAT had concluded its hearing on July 24 and reserved its judgment. The two investment firms — Cyrus Investments Pvt Ltd and Sterling Investments Pvt Ltd — had moved the appellate tribunal over maintainability of their petitions filed against the Tata group and waiver required for it under the Company Act 2013.
Both the firms had moved to the appellate tribunal after its Mumbai bench rejected the waiver plea filed on April 17 and set aside the one over maintainability on March 6. The pleas were filed after Cyrus Mistry was removed as Chairman of Tata Sons on October 24 last year. He was later removed as director from Tata Son’s board and other companies of the Tata Group.