The National Company Law Tribunal (NCLT) on Monday dismissed sacked Tata chairman Cyrus Mistry's plea against Tata Sons, alleging mismanagement and oppression of minority shareholders in the company.
While pronouncing its verdict, the NCLT said that it was not accepting Mistry's allegations that his removal was due to the result of mismanagement by the board and oppression of minority shareholders of the group.
“Don’t find merit in arguments related to mismanagement in Tata Group cos,” NCLT said in its order.
In October 2016, Mistry was sacked as Tata Sons Chairman. Two months after his sacking, Mistry and his family-run firm Cyrus Investments had approached the NCLT, alleging oppression and mismanagement.
Tata Sons welcomes NCLT order
Tata Sons welcomed the NCLT ruling to dismiss Mistry's plea and said that the verdict absolved that the group and its associate firms had “always acted in a fair manner and in the best interest of its stakeholders”.
“The judgement has only re-affirmed and vindicated that Tata Sons and its operating companies have always acted in a fair manner and in the best interest of its stakeholders,” Tata Sons Chairman N Chandrasekaran said in a statement released after the NCLT verdict.
Mistry to appeal against NCLT order
Meanwhile, the ousted Tata Sons chairman Cyrus Mistry said that he would appeal against the order of NCLT that dismissed his pleas challenging his removal.