Tata Sons moves the Supreme Court on the decision of NCLAT on the re-election of Cyrus Mistry
NEW DELHI: Tata Sons On Thursday, the Supreme Court filed an order against the National Court of Appeals for Company Law (NCLAT) that ordered the restitution of Cyrus Mistry as chief executive. However, the petition has not yet been listed, said the lawyer who appears for Tatas.
The company registrar's declaration (RoC) hearing, which seeks modifications to the NCLAT trial, has been postponed until Friday.
A two-member bank requested the ministry of corporate affairs to submit details of the definition of private and public companies under the Companies Law. The bank has also requested clarification on the capital requirement paid for it.
The tribunal had termed the appointment of N Chandrasekaran, as' illegal 'following the October 2016 sacking of Mistry as Tata Sons' executive chairman. It had also directed the RoC under the corporate affairs ministry to reverse Tata Sons' status from a 'private company' to a 'public company'.
The RoC then moved the NCLAT seeking to implement it as part of the dispute between the two and sought some modification in the order approved by the court.
The RoC has sought the elimination of the words illegal and with the help of the RoC used by the NCLAT in its order, restoring Mistry as executive chairman of the $ 110 billion Tata Group.
Months after Mistry was sacked in October 2016, Tata Sons had received its shareholders' nod in September 2017, to convert itself into a private limited company from a public limited company, therefore absolving it of the need to take shareholder consent in making crucial decisions, which could be passed with just the board's approval.
Tata Sons Ltd was initially a 'Private Company' but after insertion of Section 43A (1A) in the Companies Act, 1956 on the basis of average annual turnover, it assumed the character of a deemed 'Public Company' with effect from February 1, 1975, the order said.
(With agency contributions)