The Tata-Mistry saga
The Mumbai bench of the National Company Law Tribunal on Monday dismissed all allegations by Cyrus Mistry-owned firms against Tata Sons. A look at the major developments in the dispute between Tata Sons and its former chairman.
2016
October 24: Tata Sons removes Cyrus Mistry as executive chairman of the group holding company, appoints Ratan Tata as interim chairman, and disbands the group executive council.
November 5: Tata group’s listed companies start announcing extraordinary general meetings (EGMs) to remove Mistry as chairman. November 10:
Tata Sons replaces Mistry as chairman of Tata Consultancy Services with Ishaat Hussain as interim chairman. December 16: Nusli Wadia, Wadia who was removed as an independent director from the boards of Tata Motors and Tata Steel, files a defamation suit against Tata Sons and Ratan Tata. December 19: Mistry resigns as director from all Tata group companies.
Mistry family firms file a case against Tata Sons with NCLT, alleging oppression of minority shareholders and mismanagement.
2017
Mistry firms file contempt plea in NCLT, stating that Mistry’s removal from the board violates a December 22, 2016 order by the tribunal which said that no party would initiate any action till the matter is pending at the tribunal.
January 12: Tata Sons names N. Chandrasekaran, CEO of Tata Consultancy Services Ltd (TCS), as its chairman. NCLT dismisses Mistry firms’ contempt plea.
Mistry firms seek a waiver from NCLT on 10% shareholding threshold for filing the case alleging oppression and mismanagement. February 6: Mistry removed as director of Tata Sons. March 6: NCLT rules Mistry firms’ plea is not maintainable under the Companies Act. April 17: NCLT dismisses Mistry firms’ request for waiver of the shareholding threshold requirement and main petition alleging oppression and mismanagement against Tata Sons.
Mistry firms move the National Company Law Appellate Tribunal (NCLAT) against NCLT order on maintainability.
July 5: A Mumbai court admits ₹500 crore defamation suit by R. Venkataramanan, a trustee at Tata Trusts, against Mistry.
August 29: Tata Sons sends out an EGM notice to pass resolutions enabling it to become a private company and give voting rights to preferential shareholders.
September 21: Board of Tata Sons approves the proposal to turn the firm into a private company.
NCLT refuses to transfer Mistry’s plea from the Mumbai bench to the Delhi bench of the tribunal.
2018
Mumbai bench of NCLT reserves the order after hearing all the sides
The tribunal sets the date of July 4 for the final ruling in the case July 9: Mumbai NCLT dismisses the plea of Cyrus Mistry-owned firms on all counts Source: Mint research