The National Company Law Appellate Tribunal (NCLAT) has admitted two cases filed by ousted Tata Sons’ Chairman Cyrus Mistry, and adjourned them to July 3. The appellate tribunal also said it will continue hearing the cases till July 7.
The NCLAT bench headed by Justice S.J. Mukhopadhyay also said it will continue hearing both the issues – maintainability and grant of waiver – together, even though separate verdicts would be given.
The Mistry camp had moved NCLAT after the lower court, the National Company Law Tribunal (NCLT), had rejected its waiver petition on April 17, and the maintainability petition earlier on April 4.
On December 20, Mistry had moved the NCLT asking it to protect Tata Sons from “oppression and mismanagement of minority interest”. The suit, filed through two of his family firms, Cyrus Investments and Sterling Investment Corporation, had stated that Shapoorji Pallonji group owns 18.37 per cent stake in Tata Sons.
The two Mistry companies had also filed another petition that sought the waiver of the minimum shareholding requirement in order to challenge the Tatas at the NCLT. Although, Mistry camp holds 18.4 per cent of ordinary shares in Tata Sons, when preference shares are counted, it accounts to about 2.17 per cent.
Under the Companies Act, 2013, parties or individuals who own more than 10 per cent stake in company can appeal at the NCLT. However, this could be waived under Section 244 of the Companies Act, but at the discretion of the tribunal.