SC likely to hear Tata's plea against reinstating Cyrus Mistry on Jan 10

New Delhi: The Supreme Court has tentatively listed the petition filed by Tata Sons Private Ltd (TSPL) challenging the National Company Law Tribunal (NCLAT) order to restore Cyrus Mistry as executive chairman of the Tata group for hearing on January 10, the apex court's website revealed.

It also showed that Cyrus Investments Pvt Ltd, Cyrus Mistry and other respondents have also filed a caveat that no ex-parte order be passed in the matter.

The Tatas have submitted the petition citing that the NCLAT order “undermined corporate democracy” and the “rights” of its board of directors.

While the petition is pending in the apex court, Mistry came out with a statement on Sunday saying that he is not interested in returning to the Tata Group and the decision was made in the interest of the Group, whose interests are far more important than the interests of any individual.

"To dispel the misinformation campaign being conducted, I intend to make it clear that despite the NCLAT order in my favour, I will not be pursuing the executive chairmanship of Tata Sons, or directorship of TCS, Tata Teleservices or Tata Industries.

"I will however vigorously pursue all options to protect our rights as a minority shareholder, including that of resuming the thirty-year history of a seat at the Board of Tata Sons and the incorporation of the highest standards of corporate governance and transparency at Tata Sons," he said.

In the last three years, both in conduct and in their statements to the world at large, Tata Group's leadership has shown scant respect for the rights of minority shareholders, Mistry he said, adding that it is time the Group's management introspects and reflects on its conduct as it embarks on future actions.

"I am humbled by the NCLAT order, which after review of the enormous material on record, recognized the illegal manner in which I was removed and the oppressive and prejudicial conduct of Mr Tata and other Trustees," he said.

TSPL, formerly known as Tata Sons Limited, in its petition, has sought "setting aside of the impugned judgment in toto" of NCLAT, alleging it was "completely inconsistent with the annals of corporate law" and reflected "non-appreciation of facts", which was "untenable in law".

The NCLAT, in a big relief to Mistry and Cyrus Investment Pvt Ltd, on December 18 restored him as the executive chairman of TSPL and ruled that the appointment of N Chandrasekaran as the head of the holding company of the USD 110-billion salt-to-software conglomerate was illegal.

It held the group's chairman emeritus Ratan Tata's actions against Mistry were oppressive and the appointment of a new chairman was illegal.

It, however, stayed the operation of its order with respect to Mistry's reinstatement for four weeks to allow TSPL to file an appeal in the top court.

TSPL filed an appeal seeking a stay on NCLAT's verdict as interim relief.

The plea raised questions of law and said the order restoring Mistry to his "original position" as the executive chairman of TSPL for the "rest of the tenure" was illegal as his tenure "stood extinguished in March 2017".

The plea termed "illegal" NCLAT's declaration that Chandrasekaran's appointment as the chairman of TSPL was wrong and claimed he was appointed "in accordance with the articles and duly approved by the board and shareholders".

It alleged the NCLAT granted reliefs to Mistry which were not even sought.

It said Mistry was removed following the procedure applicable to corporate appointments, as envisaged in law.

The plea alleged it was nobody's case that Mistry's removal had resulted in any serious prejudice being caused to the working of Tata Sons and it "violated the law or any contract".

Mistry, the scion of the wealthy Shapoorji Pallonji family, had in December 2012 succeeded Ratan Tata as the executive chairman of Tata Sons, a post that also made him the head of all Tata group-listed firms such as Tata Power and Tata Motors.

(With inputs from PTI)