MUMBAI, India, April 17, 2017 /PRNewswire/ -- Tata Sons welcomes the ruling today by the National Company Law Tribunal (NCLT) dismissing the waiver application and the Company Petition, which was filed against Tata Sons by shareholders linked to its former Chairman, Mr. Cyrus P. Mistry.
The NCLT, by its order dated March 6, 2017, had held that the claims made by the Shapoorji Pallonji Group companies, espousing the case of Mr. Mistry, was not maintainable, as it did not meet the minimum shareholding threshold of 10% of issued share capital prescribed under Section 244 of the Companies Act, 2013. Today, the NCLT passed a further order dismissing the waiver application made by them for granting exemption from meeting those shareholding threshold requirements, as also the Company Petition alleging oppression of minority and mismanagement at Tata Sons.
Welcoming the ruling, Mr. F.N. Subedar, Chief Operating Officer of Tata Sons, said: "We are pleased that Mr. Mistry's claims have been dismissed by the NCLT. The order of the NCLT represents a vindication of our position.
"We hope this brings to an end a vexatious campaign against the Company, the Tata Trusts and Mr. Ratan N. Tata. Tata Sons will continue its focus on its future development under the stewardship of our Executive Chairman, Mr. N. Chandrasekaran."
Implications of the NCLT ruling
Tata Sons interprets the ruling by the NCLT as demonstrating that the petitioners failed to make a convincing or compelling case that warranted a hearing on alleged mismanagement, oppression or other actions.
The NCLT ruling of April 17, 2017, is the fifth such ruling by the company law tribunals rejecting reliefs requested by the Shapoorji Pallonji Group companies and Mr. Cyrus Mistry.
"Mr. Mistry has made many ill-advised and groundless allegations intended to besmirch the name of the Tata Group," said Mr. Subedar. "Today's ruling by the NCLT makes clear that there is no case to be heard. Over the past six months, Mr. Mistry has failed demonstrably to build a case. We trust that the NCLT's decision brings this matter to a close," he added.
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SOURCE Tata Sons