Partial Win For Cyrus Mistry As NCLAT Allows Him To Challenge Tata Sons
Ousted Tata Sons Ltd. chairman Cyrus Mistry can pursue charges of oppression and mismanagement against the company as an appeals tribunal granted him partial relief.The National Company Law Appellate Tribunal rejected his first plea to bring the charges, saying he didn’t have the requisite shareholding. However, the NCLAT granted him a waiver from the condition, allowing him to argue his case at the National Company Law Tribunal. The NCLT has to decide the matter in three months.
Mistry called appellate tribunal’s decision a “vindication of what we have stood for”.Tata Sons said in an emailed statement that it has taken stock of the order and will continue to defend the company’s position at all appropriate legal forums.The relief for Mistry comes even as parent of the $103-billion salt-to-software group plans to change its legal status from a public to a private company. That will restrict his family’s ability to sell its 18.4 percent stake to external investors.