An order dated 09th June 2018 was passed by the NCLT Mumbai in the matter of Cyrus Investments Pvt Lts and Anr V/s Tata Sons and Others whereby the removal of Mr. Cyrus Mistry as Executive Chairman by the Board of Directors and Majority Shareholders i.e. the Tata Trusts on 24.10.2016 was found to be correct as per law. Furthermore, the appeal was also filed challenging the order of NCLT Mumbai allowing Tata Sons to become a private firm. The Petition was filed by Cyrus Mistry by way of his company, Cyrus Mistry Investments Pvt Ltd challenging the decision of the Board as being violative of the provision of Section 241-244 of the Companies Act dealing with oppression and mismanagement.
On 29.08.2018, the NCLAT admitted the appeal of Cyrus Mistry against the Mumbai NCLT order and issued notices to Tata Sons seeking their response within 10 days.
The 2 Judge bench of the NCLAT presided by Justice SJ Mukhopadhyay stated that the plea would be heard on 24.09.2018 to decide the fate of Tata Sons as a Public Company. Further orders were passed preventing Tata Sons from forcing out the Mistry Family out of the holding company till the hearing of the matter was not concluded. This direction was given in reference to Article 75 of the Articles Of Association which related to “the company’s power of transfer of shares” and also with reference to the vote of the Shareholders of Tata Sons on 22.09.2017 wherein it was voted in favour of the Tata group holding firm to become a private company at the first AGM held under the chairmanship of Mr. N Chandrasekaran, the replacement to Cyrus Mistry as Chairman of Tata Sons.
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