Cyrus Mistry fails to get interim relief from Company Law Tribunal

22 Dec 2016

The National Company Law Tribunal has refused to hear the plea for interim relief by Cyrus Investments, the investment company of ousted chairman of Tata Sons Cyrus Mistry, pending disposal of a petition filed by family-owned companies of Mistry.

Mistry had moved the NCLT alleging bad practices, oppression and mismanagement in the holding company of the Tata Group, Tata Sons.

A division bench of NCLT comprising B S V Prasad Kumar (member-judicial) and V Nallasenapathy (member-technical), however, decided to hear the petition filed by Cyrus Investments Pvt Ltd and Sterling Investments Corporation Ltd, on 31 January and 1 February next year.

Saying it would not consider granting interim relief now or entertain interim proceedings, the bench asked Respondent no 11, Cyrus Pallonji Mistry, to file a reply to the petition within a week from today.

It also directed Tata Sons and other respondents to file a reply within 15 days, after Mistry files a reply. They have been asked to respond to Mistry's reply and the petition.

Cyrus Mistry moved NCLT on 20 December, against oppression and mismanagement of Tata Sons under Section 241 of the Companies Act, sources said.

The first hearing by NCLT on the petition was slated for 22 December.

While resigning from the boards of the Tata group firms yesterday, Mistry had vowed to shift his fight to a "larger platform".

"Having deeply reflected on where we are in this movement for cleaning up governance and regaining lost ethical ground, I think it is time to shift gears, up the momentum, and be more incisive in securing the best interests of the Tata Group," Mistry had said.

He further said that with this thought in mind, he "decided to shift this campaign to a larger platform and also one where rule of law and equity is upheld".