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Rediff.com  » Business » NCLT judgement is a vindication of the actions that Tata Sons took

NCLT judgement is a vindication of the actions that Tata Sons took

July 09, 2018 21:04 IST

It is a reinforcement of the principles and forthrightness that prevails in our judicial system, which should make all of us proud of our country and its democracy.

Ratan Naval Tata, the chairman of the Tata Trusts, which own over 66 per cent in the Tata Sons, on Monday welcomed the NCLT verdict that dismissed the petitions of Cyrus Mistry and his family, which is the single largest shareholder in the diversified group.

 

The Mistry family owns over 18.34 per cent in Tata Sons, since the past six decades or so, making them the largest non-promoter shareholder in the country's largest business group.

"The judgement of the NCLT is a vindication of the actions that Tata Sons felt obliged to take in October 2016," Tata, who is the chairman emeritus of the salt-to-software group said in a statement on Monday evening.

"It is a reinforcement of the principles and forthrightness that prevails in our judicial system, which should make all of us proud of our country and its democracy," Tata added.

Two months after Mistry was ousted as Tata Sons chairman in October 2016, he and his family-run investment firm, Cyrus Investments, moved the NCLT.

They moved the tribunal as minority shareholders against the corporate monolith and others, including Ratan Tata, alleging oppression and mismanagement.

Tata Sons said the NCLT order dismissing pleas of Cyrus Mistry vindicates that the group and its operating firms have always acted in a fair manner even as Mistry said he would challenge the ruling.

Welcoming the order, Tata Sons chairman N Chandrasekaran hoped "that a finality will be given to the judgement of NCLT, by all concerned in the larger interest of companies, the shareholders and the public".

"The judgement has only reaffirmed and vindicated that Tata Sons and its operating companies have always acted in a fair manner and in the best interest of its stakeholders," he said in a statement.

The Tata Group has always been committed and will continue to be committed to transparency and good corporate governance of global standards, he added.

On the other hand, a statement from Mistry's office described the ruling as "disappointing although not surprising".

An order of NCLT can be challenged before the National Company Law Appellate Tribunal (NCLAT).

Photograph: PTI Photo

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