On Monday (July 9th, 2018) Mumbai Branch of National Company Law Tribunal (NCLT) dismissed the Petition filed by Cyrus Mistry against Tata Sons, Ratan Tata, and several others, through an oral order.
The Tribunal favouring Tata Sons stated that the board of directors are competent to remove executive directors and that they didnt find any merit in legacy issues raised by Mr. Mistry against Tata Sons.
Further, the Tribunal said that Mr. Cyrus Mistry was ousted because the board and majority of its members lost their confidence on him after he leaked out certain crucial information about the company to the I-T department, and to the media which came out openly in public against the company's shareholders and its board.
The fight between Cyrus Mistry and team Tata started in October 2016 when Cyrus Mistry was removed as the Chairman of Tata Sons. After that, he filed a suit under Sections 241 and 244 of the Companies Act, 2013 alleging oppression and mismanagement in Tata Sons.
In his plea, Mr. Cyrus Mistry had said that his removal as Tata Sons' chairman was illegal. He had also alleged mismanagement at Tata Sons, oppression of minority shareholders, a breakdown of corporate governance and excessive interference by Tata Trusts.
