NCLAT dismisses RoC plea, refuses to modify order on Cyrus Mistry reinstatement

The Indian Express
January 07, 2020

The National Company Law Appellate Tribunal (NCLAT) Monday dismissed the petition filed by the Registrar of Companies (RoC) seeking modification in the former’s judgment passed in the Tata-Mistry case.
A two-member Bench headed by NCLAT Chairman Justice SJ Mukhopadhaya dismissed the plea filed by RoC, saying, “there is no ground to amend judgment dated December 18, 2019.”
On December 18, the NCLAT had directed to reinstate Cyrus Mistry as the executive chairman of Tata Group and also termed conversion of Tata Sons from a public company to a private one by the RoC as “illegal”. Tata Sons moved the Supreme Court last week against NCLAT’s December 18 order. The RoC, which comes under the Ministry of Corporate Affairs, had sought to be impleaded as a party in the two petitions and deletion of words “illegal” and “with the help of the RoC” used by the appellate tribunal in its 172-page judgment.
The NCLAT had termed the appointment of N Chandrasekaran as Tata Sons chairman as “illegal”, following the October 24, 2016 sacking of Mistry as Tata Sons’ executive chairman. It had also directed the RoC to reverse Tata Sons’ status from a ‘private company’ to a ‘public company’.
RoC, Mumbai had asked the NCLAT “to carry out requisite amendments” in Para 186 and 187 (iv) of its judgment “to correctly reflect the conduct of the RoC, Mumbai as not being illegal and being as per the provisions of the Companies Act”. Besides, it had also urged “to delete the aspersions made regarding any hurried help accorded by the RoC, Mumbai to Tata Sons, except what was statutorily required” in para 181 of the order.
On Sunday, Cyrus Mistry said he “won’t be pursuing the executive chairmanship of Tata Sons, or directorship of TCS, Tata Teleservices or Tata Industries” despite the NCLAT order in his favour. However, in his statement, he demanded a seat on the board of Tata Sons, the holding company of the Tata Group.
Mistry had come down on the Tata Group’s leadership, saying that both in conduct and in its statements to the world at large, it has shown scant respect for the rights of minority shareholders in the last three years.


Mistry’s statement came after TCS, Tata Teleservices and Tata Trusts separately moved the apex court seeking stay on the reinstatement of ousted Mistry as director of the three group companies. Tata Sons had, last Thursday, approached the top court against Mistry’s reinstatement as its executive chairman asking the NCLAT order, which termed conversion of Tata Sons from public to private company as ‘illegal’, be set aside. Tata Sons chairman-emeritus Ratan N Tata also moved the top court last week in his personal capacity seeking the NCLAT order to be quashed.
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