The National Company Law Tribunal has held that petitions filed by Cyrus Mistry’s firms are non-maintainable.
Mistry’s firms — Cyrus Investments Pvt Ltd and Sterling Investments Pvt Ltd — had alleged oppression of minority shareholder rights and mismanagement at the Tata Group in the main petition.
The question of maintainability was an important issue as Tata Sons had argued that the main petition filed on December 20 is not maintainable as Mistry’s family firms owned only 2.17% shares of the total share capital (equity + preference shares) of Tata Sons.
According to law, they argued, shareholder needs at least 10% to file a petition in the NCLT. Mistry’s lawyers had sought a waiver from the rule. The waver application will be decided by NCT on Tuesday.
Reportedly, Mistry’s lawayer wanted NCLT to clear its position on the maintainability of the case before starting his arguments on the main petition so that he could appeal against any adverse decision.