In a big setback to Cyrus Mistry, the National Company Law Tribunal dismissed his company's plea alleging contempt of court by Tata Sons. Two Shaporji Pallonji firms had filed a petition against Tata Sons, on 11th January, alleging contempt. A case of "wilful disobedience" was filed against Tata Sons on behalf of Mistry, by Cyrus Investments and Sterling Investments, after the Tata called an EGM on February 6.
The NCLT had earlier, accepted a caveat filed by Mistry's firms, technically barring Tata Sons from holding "any further actions in the issue" without prior information to NCLT. After filing of case by Mistry's firms, Tata Sons had released a statement saying, "This afternoon Tata Sons Ltd was served with a petition under Sections 241 and 242 of the Companies Act before the National Company Law Tribunal. We understand that the petition has been filed by investment companies of Cyrus Mistry." It further said, "Tata Sons is in consultation with its lawyers and will contest the allegations therein."
Tatas look to hike stakes in key listed cos
Sources said that Tata Sons is looking to hike its stakes in five of its largest businesses, including Tata Motors and Tata Steel. New Tata Sons chairman Chandrasekaran has been tasked with ensuring the group has sufficient power over major listed companies using the Tata brand, according to sources. India's largest conglomerate aims to gradually increase its holdings in Indian Hotels Co, which runs the Pierre in New York, as well as Tata Chemicals and Tata Power. While it owns 73% of Tata Consultancy Services, the group's stakes in the other key companies range from 31 to 39%.
