Tata-Mistry case: SC fixes matter for final hearing on Dec 2

Supreme Court Wednesday listed for final hearing on December 2 cross appeals filed by Tata Sons and Cyrus Investments against appellate tribunal NCLAT's order which h restored Cyrus Mistry as executive chairman of over USD 100 billion salt-to-software Tata conglomerate.

A bench heed by Chief Justice S A Bobde questioned senior vocate C A Sundaram, appearing for Cyrus Mistry and his firms, for filing applications repeatedly when case was alrey listed for final hearing.

“Why are you filing IAs (interlocutory applications)after IAs when matter is alrey listed for final hearing,” said bench, also comprising Justices A S Bopanna and V Ramasubramanian, asked Sundaram.

When Sundaram said y want to bring something new to apex court’s tice, bench said that re won’t se issues be covered in final hearing? All issues which you are raising in se IAs can be taken up during final hearing.

Senior vocate A M Singhvi, appearing for Tata Sons Pvt Ltd, said that apex court h on September 22 alrey fixed matter for final disposal.

List matters on December 2 for final disposal,  bench said in its order.

top court h on September 22 restrained Shapoorji Pallonji (SP) Group and Cyrus Mistry as also his investment firm from pledging or transferring ir shares of Tata Sons Pvt Ltd (TSPL).SP Group, which owns 18.37 per cent in Tata Sons, has said TSPL moved top court to block its plan to pledge shares for raising funds and that reeked of vindictiveness and oppression of mirity shareholder rights.

On September 5, Tata Sons h moved top court seeking to restrain Mistry group from raising capital against ir shares. It sought to prevent SP Group from creating any direct or indirect pledge of shares.SP Group was planning to raise Rs 11,000 crore from various funds and h signed a deal with a marquee Canian investor for Rs 3,750 crore in first tranche against a portion of its 18.37 per cent stake in Tata Sons.

SP Group share holding in country's largest business house is valued at over Rs 1 lakh crore.TSPL h earlier told top court that it was t a 'two-group company' and re was 'quasi-partnership' between it and Cyrus Investments Pvt Ltd.

TSPL h said this in an affidavit filed in apex court while responding to cross-appeal filed by Cyrus Investments seeking removal of alleged amalies in NCLAT order for getting representation on TSPL's board in proportion to stakes held by his family.

apex court h on January 10 granted relief to Tata group by staying National Company Law Appellate Tribunal (NCLAT) order of December 18 last year by which Mistry was restored as executive chairman of conglomerate.Mistry h succeeded Ratan Tata as chairman of Tata Sons in 2012 but was ousted four years later. top court h also observed re were "lacunae" in orders passed by tribunal.

n, on May 29, it h issued tice to TSPL and ors on a cross-appeal filed by Cyrus Investments Pvt Ltd.Mistry h also filed an affidavit to apex court saying Tata Group h an justed net loss of Rs 13,000 crore in 2019 -- worst losses in three deces.In his reply to Tatas' petition challenging his reinstatement by NCLAT last December, Mistry h also demanded that group chairman emeritus Ratan Tata should reimburse all expenses to Tata Sons since his departure in December 2012 in keeping with best global governance standards.

Mistry is seeking representation in company in proportion to 18.37 per cent stake held by his family, cross-appeal has said.

In its affidavit filed in top court, Tata Sons has alleged that thrust of Cyrus Investments' focus “has w shifted to propagating quasi-partnership ory to secure relief of 'proportionate representation'.

According to petition, Mistry group firm has sought remedies for many amalies in NCLAT order, including t looking at alleged oppression of mirity shareholders as well as converting Tata Sons into a private limited company as a post-facto move.

As per petition, tribunal order clearly and unequivocally found prejudicial conduct by Tata Sons, but failed to provide certain important reliefs that would have put an end to oppressive conduct of majority shareholder.

Reinstating Mistry as chairman, NCLAT h also termed action of Registrar of Companies to allow conversion of Tata Sons into a private limited company illegal. 

(IM CREDITS:PTI)