The National Company Law Tribunal (NCLT) on Monday dismissed a petition filed by Cyrus Mistry challenging his dismissal as chairman of Tata Sons.
"We have not found any merit in the petition," the law tribunal said. "The management is more accountable to shareholders," it said while ruling in favour of Ratan Tata.
Mistry, in the petition filed under the Companies Act, claimed that his removal was due to a result of mismanagement by the board's trustees and oppression of minority shareholders of the group.
He had taken over as the chairman of Tata Sons group in 2012 after Ratan Tata announced his retirement. Mistry, who was the sixth chairman of the Tata Sons, was ousted from the position in October 2016.
Two months later, Mistry and his family-run investment firm, Cyrus Investments, approached the NCLT, as minority shareholders, against the corporate monolith and others including Ratan Tata alleging oppression and mismanagement.
Mistry in his plea claimed that his removal as chairman was without reason and amounted to the majority shareholders suppressing the right of the minority to ask questions about matters involving the company.
As per the plea, Mistry was five months later also removed from the post of director of Tata Sons' Board for approaching NCLT.
(With inputs from PTI)
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