NCLAT reserves the request for the RoC statement in the Tata-Mistry case, the trial probably on Monday
NEW DELHI: The National Court of Appeals for Company Law (NCLAT) on Friday reserved its order on the statement presented by the Registrar of Companies (RoC) seeking modifications to the ruling in which Cyrus Mistry was readmitted as executive president of Tata Sons.
A two-member bank headed by the president of justice S J Mukhopadhaya said his order is likely to arrive on Monday of next week.
During the process, the ministry of corporate affairs said that it was doing its duty and that it had not committed any illegality in the conversion of Tata Sons from a public company to a private company.
On Thursday, NCLAT had requested specific clarification on the capital requirement paid for it.
NCLAT, on December 18, ordered the $ 110 billion Tata group to reinstate Cyrus Mistry as chief executive of Tata Sons.
The court described the appointment of N. Chandrasekaran as illegal following the dismissal in October 2016 of Mistry as chief executive of Tata Sons. He had also ordered the RoC to change the status of Tata Sons from a 'private company' to a 'public company'.
In the order, the court of appeals also annulled the conversion of Tata Sons, the main holding company and promoter of the Tata companies, into a private company of a public company and described it as illegal.
The court has said that the action taken by the RoC to allow the company to become a private company was contrary to the provisions of the Companies Act of 2013, and 'harmful' and 'oppressive' for the minority member ( Mistry Camp).
In an urgent request, which was mentioned on December 23, just five days after the NCLAT ruling, RoC Mumbai requested the appeals court to make the necessary amendments in paragraphs 186 and 187 (iv) of its judgment to correctly reflect RoC Mumbai conduct as non-illegal and according to the provisions of the Companies Law
In its plea, the RoC, which operates under the Ministry of Corporate Affairs, had tried to be implemented as one of the parties in the two petitions and the elimination of the illegal words and with the help of the RoC used by the NCLAT in its trial
In addition, he also urged the elimination of sprays made with respect to any expedited aid granted by the RoC Mumbai to Tata Sons, except as legally required in paragraph 181 of the order.
The RoC also said that it has acted in good faith in converting the state of Tata Sons since this appeals court did not grant the suspension on the operation of the July 9, 2018 ruling of Mumbai, NCLT, at the time it is Information was submitted by Tata Sons Ltd.
Tata Sons had moved to the Supreme Court on Thursday against his order approved on December 18.
Months after the dismissal of Mistry, Tata Sons received the approval of its shareholders in September 2017, to become a private limited company of a corporation, which absolved it of the need to obtain the consent of the shareholders to make decisions crucial, which could be approved with only board approval.
Tata Sons was initially a 'private company', but after the insertion of Section 43A (1A) in the Companies Act of 1956, based on the average annual turnover, it assumed the character of a 'public company' considered as of February 1, 1975, the order said.