NCLT dismisses Mistry’s plea

Mumbai: The National Company Law Tribunal (NCLT) on Monday dismissed pleas of Cyrus Mistry challenging his removal as Tata Sons chairman as also the allegations of rampant misconduct on part of Ratan Tata and the company’s Board. A special bench of the tribunal held that the Board of Directors at Tata Sons was “competent” to remove the executive chairperson of the company.

Mumbai, July 9: In a set back to ousted Tata Sons chairman Cyrus Mistry, a company law tribunal on Monday ruled that the board of the $100 billion conglomerate was competent to dismiss its executive chairman, and said it found no merit in his allegations of mismanagement in Tata group firms.

The NCLT rejected Mr Mistry’s contention of proportional representation on Tata Sons board saying his conduct did not augur well for the smooth functioning of the group.

While Mr Mistry said the ruling was “disappointing although not surprising” and an appeal on merits will be pursued, Tata Group patriarch Ratan Tata said the ruling was a vindication of the actions that Tata Sons took against him in October 2016.

Ruling on Mr Mistry’s December 2016 petition against his “illegal” removal as chairman of the salt-to-software conglomerate after a fouryear stint, Mumbai NCLT’s division bench said that he was ousted because the Tata Sons’ Board and its majority shareholders had “lost confidence in him”.

— PTI

The judgement of the NCLT is a vindication of the actions that Tata Sons felt obliged to take in October 2016. It is a reinforcement of the principles and forthrightness that prevails in our judicial system, which should make all of us proud.

— RATAN TATA