Tribunal Rejects Cyrus Mistry’s Contempt Plea Against Tata Sons
Tata Sons had removed Cyrus Mistry as its chairman on 24 October 2016.
The National Company Law Tribunal (NCLT) has dismissed a contempt petition filed by Cyrus Mistry’s two family firms against Tata Sons.
The petition had contended that Tata Sons’ decision to call an extraordinary general meeting (EGM) on 6 February to remove Mistry as a director from its board was wilful disobedience of the tribunal’s 22 December order and amounted to contempt.
Judicial member Prakash Kumar, who read out the operative part of the order in a packed courtroom, allowed the Mistry companies to file an affidavit regarding the EGM within three days.
The court, while hearing the original company petition filed by the two Mistry companies, had passed a consent order on 22 December binding all parties not to move any interim applications or take any action regarding the subject matter of the petition.
Tata Sons had removed Mistry as its chairman on 24 October 2016, citing loss of trust. A boardroom battle and a bitter public feud followed. Mistry eventually moved the tribunal against his ouster.
(The article has been published in an arrangement with BloombergQuint)
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