The Supreme Court issued notices on Friday to Tata Sons Ltd and Ratan Tata on a plea by two Shapoorji Pallonji group firms, Cyrus Investments and Sterling Corp., seeking board representation proportionate to the 18.4% stake they hold in the Tata group holding company.
The notices were issued on a plea moved by the two firms against a December 2019 ruling by the National Company Law Appellate Tribunal (NCLAT).
A bench of justices AS Bopanna and Hrishikesh Roy tagged the petition along with the appeals filed by Tata Sons in January challenging the NCLAT verdict. Both appeals will now be heard together.
Cyrus Investments and Sterling said in their petition that although NCLAT acknowledged oppression of minority shareholder in removing Mistry as executive chairperson of Tata Sons and had reinstated Mistry to that position, it failed to grant certain crucial reliefs to the firms.
“The NCLAT by limiting the relief granted to the appellants in connection with their prayer for Board representation, only to the remainder of Cyrus Mistry’s tenure has not secured the interest of the Shapoorji Pallonji group from any prejudicial conduct in the future,” the petition said.
The NCLAT, in its December 18, 2019 judgment, had ruled in favour of the Mistry firms holding that the proceedings of the board meeting of Tata Sons held on October 24, 2016, removing Mistry as chairman was illegal.
Source: Read Full Article