News

May 30, 2020

SC notice to Tata Sons on cross-appeal by Mistry against NCLAT verdict


[ by Legal Era News Network ]

Cyrus-Mistry-Ratan-Tata

The Supreme Court on May 29 agreed to hear a cross-appeal filed by Cyrus Mistry, seeking more relief than granted by the National Company Law Appellate Tribunal (NCLAT) verdict in December 2019.

The Supreme Court issued notice to Tata Sons Pvt Ltd (TSPL) and others, and tagged the cross-appeals with the appeals filed by Tata Sons, Ratan Tata and others challenging the NCLAT verdict, which reinstated Mistry as the Executive Director of Tata Sons. Mistry and his firm sought removal of anomalies in the NCLAT verdict to get representation on the TSPL board.

A bench of Justices A.S Bopanna and Hrishikesh Roy, which took up the matter through video conferencing, said: “Issue notice. Tag with Civil Appeal Nos... And connected matters, if any. In the meantime, pleadings be completed by the parties within a period of four weeks from today. List the matter(s) thereafter.”

In January, the Apex Court had stayed the NCLAT order.

Through the cross-appeal, Mistry is seeking representation on the board in proportion to the 18.37% stake held by his family. The cross-appeal argued that it was incumbent on the NCLAT to have granted proportionate representation that would have ensured that the interests of the SP Group are protected in future.

In the petition, Mistry has described the group’s relationship with Tatas as a quasi-partnership relationship of a vintage of over 60 years, holding 18.37% stake in the equity share capital of Tata Sons and whose stake is now worth over Rs. 1.5 lakh crore.

A heated argument broke out on the court’s remark on the stay of the tribunal judgement. Senior advocate C.A. Sundaram, representing the company Cyrus Investment Pvt Ltd, contended instead of staying the tribunal judgement, the Court could order status quo; and a notice could be issued within two weeks to file a reply.

Mistry’s side had also wanted to place a note apparently on an interim arrangement, but it was not accepted by the Court.

Senior advocate N.K. Kaul represented Mistry and senior advocate Shyam Divan represented the shareholders on Mistry’s side. Mistry’s side also said that they have been sidelined completely. Sundaram contended before the bench he was not pressing on relief in connection with the reinstatement, instead he was against the wrong process adopted to remove Mistry.



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