MUMBAI: The National Company Law Tribunal (NCLT) has deferred its judgment on the sensational Cyrus Mistry-Tata Sons corporate boardroom feud to next Monday.
The two-member bench said it needed to make “corrections” before pronouncing the final verdict on July 9.
Last week, just ahead of the NCLT verdict, Mistry fired a fresh salvo at Tata Sons, questioning the rationale behind decisions like the sale of its telecom arm to Airtel, massive debt-driven acquisitions by Tata Steel and its tie-up with ThyssenKrupp and others.
In a letter to the directors of Tata Sons, Cyrus Investments, the key investment vehicle of the Mistry family, sought accountability and information from the board of Tata Sons.
It may be noted that the Tata-Mistry legal spat started after Mistry was drummed out of office on October 24, 2016, citing underperformance and loss of confidence of the board in him. He moved NCLT in December 2016, but the bench had dismissed the petition citing eligibility clause. Mistry challenged it and moved the NCLAT, which ordered a fresh hearing and eventually heard the case between October 2017 and February 2018.
Mistry challenged his ouster as chairman and director of the Tata Sons board, terming it a case of oppression by the promoters who have over 68 per cent stake in Tata Sons via Tata Trusts. According to him, the Tatas made changes to the articles of association to further his dismissal, which he said was “arbitrary”.
On the other hand, Mistry and family firms are the single largest shareholder with about 18 per cent stake in Tata Sons but have just about 4 per cent voting rights. Importantly, Mistry also alleged mismanagement by Tata Sons board and Ratan Tata that caused revenue losses for the group.
In his petitions, Mistry contented that the articles of association of Tata Sons by structure were biased against the rights of minority shareholders and thereby oppressive, which the Tatas have dismissed. Mistry took over the reins in December 2012 after the group patriarch Ratan Tata demitted office on attaining 70 years.
