Ratan Tata welcomes NCLT decision, Cyrus Mistry disappointed

July 9 (AZINS) The National Company Law Tribunal (NCLT) on Monday rejected pleas of Cyrus Mistry challenging his removal as Tata Sons chairman as also the allegations of rampant misconduct on part of Ratan Tata and the company's Board. Ratan Naval Tata, the chairman of the Tata Trusts, which own over 66 per cent in the Tata Sons, today 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 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 this 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.

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.

However, Cyrus Mistry in a statement released termed the decision disappointing but not surprising. "The ruling of the National Company Law Tribunal is disappointing although not surprising. We will continue to strive for ensuring good governance and protection of interests of minority shareholders and all stakeholders in Tata Sons from the wilful brute rule of the majority," the statement read.

"The ruling is in line with the earlier position expressed by the Tribunal. An appeal on merits will be pursued", Mystry statement read further.

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.