Mumbai: The National Company Law Tribunal (NCLT) today refused to grant a stay on the extraordinary general meeting (EGM) called by Tata Sons on February 6 to consider removal of Cyrus Mistry from the Board of Tata Group's holding company.
A Sundaram, counsel for Cyrus Mistry family companies, pressed for interim relief in contempt petition (against Tata Sons) which had sought a stay on EGM slated for February 6.
"This issue was already decided in the last hearing when the contempt petition filed by two Mistry family companies was dismissed. There are no road blocks for Tata Sons to hold the EGM. It can go ahead with the forthcoming EGM," said a division bench of NCLT comprising B S V Prasad Kumar (Member-Judicial) and V Nallasenapathy (Member-Technical).
Lawyer for Mistry companies today sought adjournment and NCLT deferred the hearing till February 13. Outside the Tribunal, the counsel for Mistry companies said he would seek instructions from his client but the option to file an appeal against the Tribunal's order passed today was under their consideration.
The appeal can be filed by Mistry group companies either in the Appellate National Company Law Tribunal or in the Supreme Court, legal sources said. On January 18, NCLT had dismissed contempt plea filed by Mistry group companies alleging violation of NCLB directives in taking steps to remove Mistry from the Board of Tata Sons.
However, while dismissing contempt plea, NCLT had allowed Mistry companies to file an affidavit on the issue of Tata Sons holding EGM on February 6. Accordingly the affidavit was filed and Mistry companies today pleaded for interim relief in the contempt petition seeking a stay on the EGM.
But the Tribunal refused to grant a stay saying that the issue was decided in the last hearing when the contempt plea of Mistry companies was dismissed. NCLT, today, asked Mistry companies to argue on merits on their main petition challenging the removal of Cyrus Mistry as the Chairman of Tata Sons alleging bad practices, oppression and mismanagement in the holding company.
However, Sundaram, Counsel for Mistry Companies, insisted that he would first argue on the maintainability of the petition and then on the merits. NCLT, however, expressed its displeasure over the lawyer's stand, saying that he was not cooperating with the proceedings in the case.
The bench, however, has given a last chance to him to argue on merits of the petition on next occasion, February 13, or else it would dismiss it....