NCLAT allows waiver plea of Cyrus Mistry firms

Cyrus Mistry (Ex-Chairman of TATA Sons)

The National Company Law Appellate Tribunal (NCLAT) today rejected the pleas filed by Cyrus Mistry's firmsagainst the Tata Sons on grounds of maintainability.

Mistry's firms had filed pleas on grounds of alleged mismanagement, oppression of minority shareholders and on whether their pleas are maintainable.

However, NCLAThas allowed waiver to Cyrus Mistry, while also directing the case to be decided by the NCLT in three months.

The Companies Act mandates that a petitioner should hold at least one-tenth of the issued share capital of a company or represent 10 percent of the total number of members to file cases alleging mismanagement and oppression of minority shareholders.



Following NCLT's verdict, Mistry's two investment firms - Cyrus Investments Private Limited and Sterling Investments Private Limited - had moved the NCLAT over maintainability of their petitions filed against the Tata group and waiver required for it under the Company Act 2013.

Mistry was ousted as Tata Sons chairman on October 24, 2016 and was also removed subsequently as director on the board of the holding company on February 6, 2017.