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Cyrus Mistry replies to NCLT on Tata Sons 'counter-allegations'

Tata Sons’ ousted Chairman Cyrus Mistry on Monday replied to the National Company Law Tribunal (NCLT) on the 'counter-allegations' made by the holding company of the industrial conglomerate.

The replies came through an affidavit which was filed by Mistry’s investment companies to the NCLT’s Mumbai bench.

The rejoinder comes after Tata Sons had filed an over 200-page affidavit with the NCLT earlier in January, rebutting charges levelled against it by the investment companies of Mistry.

Currently, the NCLT in Mumbai is hearing the petition filed by Mistry’s investment companies.

Cyrus Mistry, outsted chairman, Tata Sons. AP

Cyrus Mistry, outsted chairman, Tata Sons. AP

The Tata Sons’ affidavit, among other things, alleged that Mistry had under-performed as the Chairman of Tata Sons, which led to a decline in dividend payments to Tata Trusts.

Further, the affidavit pointed out that the Board of Tata Sons had lost confidence in Mistry.

Earlier, Tata Sons had been served with a petition filed before the NCLT by Mistry’s investment companies under Sections 241 and 242 of the Companies Act.

On its part, Tata Sons has also served legal notice to Mistry, alleging breach of confidentiality and passing on sensitive information to his family-controlled companies.

In another development on 18 January, the top corporate tribunal had dismissed a petition filed against Tata Sons by Mistry for calling a shareholders’ meet to remove him as a Director on the company’s Board.

The NCLT’s Mumbai bench had dismissed the petition filed by Mistry’s investment company -- Cyrus Investment Private Limited.

Tata Sons’ Board ousted Mistry on 24 October, 2016 as its Chairman and appointed Ratan Tata as Interim Chairman.

However, Mistry still remains a Director on the board of the holding arm of the $100 billion-plus group.

Tata Trusts hold 66 percent stake in the holding company of the Tata Group, with Mistry’s family holding over 18 percent interest.

The petition had also sought an injunction against the proposed extra-ordinary general meeting (EGM) which is said to have been called on 6 February, 2017.

The petition alleged that the company had violated NCLT’s order dated 22 December, 2016, as it called for an EGM by issuing a special notice on 3 January, 2017.

In response to the petition, Tata Sons that time had said: “There is no contempt. We will make our submissions to the NCLT.”

Updated Date: Jan 24, 2017 09:13 AM

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