Cyrus Mistry launches legal battle against Tata Sons: Sources
Mistry has cited the Act's sections 241 and 242, which deal with shareholder oppression and mismanagement, one of the sources said. Photograph: (AFP)
Former Tata Sons chairman Cyrus Mistry filed a petition with the National Companies Law Tribunal (NCLT) against the $100 billion conglomerate on Tuesday.
Two sources familiar with the case said the petition was filed under the Companies Act of 2013, citing sections 241 and 242 with NCLT, which deals with corporate grivances.
Mohan Parasaran, one of Tata's lawyers, told CNBC TV18 that since Mistry has filed a petition with the NCLT, the onus would be now on him to prove that the actions of Tata Sons had hurt the interests of minority shareholders
Sections 241 and 242 deal with shareholder oppression and mismanagement.
This move comes in after Mistry promised to take up his campaign to a "larger platform" after resigning from boards of six Tata Sons companies.
In an interview with Reuters on Tuesday, Mistry said
"At some point in its history, every institution reaches an inflection point. This one has come to an inflection point now,"
"How we all behave today will determine what will happen to this institution in the future."
Mohan Parasaran, one of Tata Sons lawyers, told CNBC TV18 that since Mistry has filed a petition with the NCLT, the onus would be now on him to prove that the actions of Tata Sons had hurt the interests of minority shareholders.
The Shapoorji Pallonji, Mistry's family have a roughly 18 per cent stake in Tata Sons, with Tata Trusts' owning a controlling 66 per cent stake in the holding company.
All Trusts are chaired by Tata Sons patriach Ratan Tata who replaced Mistry as the chairman of the holding company
(WION with inputs from Reuters)