Mumbai, Jan 10: Sources close to Tata Sons’ ousted Chairman Cyrus Mistry on Monday said that “a full and fitting reply” will be given to the National Company Law Tribunal (NCLT) on the “counter-allegations” made by the holding company of the industrial conglomerate.
The development comes after Tata Sons filed an over 200-page affidavit with the NCLT, rebutting charges levied against it by the investment companies of Mistry.
Currently, the NCLT in Mumbai is hearing the petition filed by Mistry’s investment companies.
“It is but natural that Tata Sons and its directors and the trustees of Tata Trusts would deny allegations and level counter-allegations,” sources close to Mistry said.
“The petitioners and Cyrus Mistry will indeed file their rejoinder on all facts and issues that are involved in the proceedings. A full and fitting reply will be filed within applicable deadlines.”
The affidavit, among other things, alleged that Mistry had under-performed as the Chairman of Tata Sons, which led to a decline in dividend payments to Tata Trusts.
Further, the affidavit pointed out that the Board of Tata Sons had lost confidence in Mistry.
Earlier, Tata Sons had been served with a petition filed before the NCLT by Mistry’s investment companies under Sections 241 and 242 of the Companies Act.
On December 22, Tata Sons said the NCLT has not granted any interim relief to its ousted chairman.
On its part, Tata Sons also served legal notice to Mistry, alleging breach of confidentiality and passing on sensitive information to his family-controlled companies.
However, no damages were sought.
The holding company of the industrial conglomerate had filed a petition before the NCLT for alleged “breach of confidentiality obligation by a Director”.
Mistry, who still remains a Director on the board of the holding arm of the $100 billion-plus group, was asked to desist from such alleged actions.
Tata Sons’ board ousted Mistry on October 24 and appointed Ratan Tata as interim Chairman.
Tata Trusts hold 66 per cent stake in the holding company of the Tata Group, whereas Mistry’s family holds over 18 per cent interest.