Full text: Cyrus Mistry to appeal against NCLT order; terms ruling as 'disappointing, not surprising'

Ousted Tata Sons chairman Cyrus Mistry today said he would appeal against the order of National Company Law Tribunal (NCLT) that dismissed pleas challenging his removal.

Press Trust of India July 09, 2018 15:41:55 IST
Full text: Cyrus Mistry to appeal against NCLT order; terms ruling as 'disappointing, not surprising'

New Delhi: Ousted Tata Sons chairman Cyrus Mistry today said he would appeal against the order of National Company Law Tribunal (NCLT) that dismissed pleas challenging his removal.

A statement from Mistry's office described the NCLT, Mumbai, ruling as "disappointing although not surprising".

"We will continue to strive for ensuring good governance and protection of interests of minority shareholders and all stakeholders in Tata Sons from the wilful brute rule of the majority," the statement said.

Full text Cyrus Mistry to appeal against NCLT order terms ruling as disappointing not surprising

File image of former Tata group chairman Cyrus Mistry. Reuters

In a ruling today, the tribunal said it was not accepting Mistry's contentions that his removal was due to the result of mismanagement by the board and oppression of minority shareholders of the group.

"The ruling is in line with the earlier position expressed by the tribunal. An appeal on merits will be pursued," the statement said.

Under the Companies Act 2013, an order of NCLT can be challenged before the National Company Law Appellate Tribunal.

According to the statement, matters like TTSL, Air Asia, 'recovery of dues' from serial entrepreneur C Sivasankaran, non-closure of a loss-making Nano, a struggling resolution of Tata Steel Europe and all present serious issues will be pursued.

"Not only the facts that were under consideration but also subsequent facts and developments that continue to evidence oppression and mismanagement will be under scrutiny and will be pursued in full earnest," it added.

In October 2016, Mistry was ousted as Tata Sons Chairman.

Two months later, he and his family-run investment firm, Cyrus Investments, approached the NCLT as minority shareholders against the corporate monolith and others, including Ratan Tata, alleging oppression and mismanagement.

Here is the full text of the letter:

The ruling of the National Company Law Tribunal is disappointing although not surprising. We will continue to strive for ensuring good governance and protection of interests of minority shareholders and all stakeholders in Tata Sons from the wilful brute rule of the majority.

The ruling is in line with the earlier position expressed by the Tribunal. An appeal on merits will be pursued. Matters like TTSL, Air Asia, recovery of dues from Siva, non-closure of a loss-making Nano, a struggling resolution of Tata Steel Europe, all present serious issues that will be pursued. Not only the facts that were under consideration but also subsequent facts and developments that continue to evidence oppression and mismanagement will be under scrutiny and will be pursued in full earnest.

Ours has always been a principled fight to restore the Tata Group to its glorious days of high standards, best practices and most importantly, the best value systems. In this journey, no matter how hard it may seem, as shareholders who have always supported the Tata Group, it remains our duty to protect the Tata Group from those were destroying value and making the Group vulnerable to external forces.

Related: Full text: Tata Sons welcomes NCLT order; judgment 'vindicates' Group, says N Chandrasekaran

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