Tata-Mistry: SC stays NCLAT order dismissing RoC plea

Tata-Mistry row: SC stays NCLAT order dismissing RoC plea seeking modification of verdict

The apex court said there was no prayer in the petition for reinstatement of Mistry but the tribunal went ahead with it and ordered that

The top court had directed that the Tatas will not exercise power under Article 75 of the 'Articles of Association' for pushing out shares of minority holders in the company. (PTI Photo)

The Supreme Court Friday stayed the NCLAT's order that had dismissed a plea by the Registrar of Companies for modification of its verdict in the Tata-Cyrus Mistry case.

A bench of Chief Justice S A Bobde and Justices B R Gavai and Surya Kant agreed to hear the appeal of Tata Sons Pvt Ltd (TSPL) and issued notice to the parties concerned.

The court told senior advocate A M Singhvi and others, appearing for Tata Sons, that it would hear the matter along with the main plea filed against the verdict of National Company Law Appellate Tribunal (NCLAT).

TSPL challenged the December 18 decision of NCLAT which gave big relief to Cyrus Mistry, restoring him as the executive chairman of TSPL. NCLAT had ordered the reinstatement of Mistry as the head of Tata Sons, the holding company of $10-billion salt-to-software conglomerate, saying his 2016 sacking was wrong.

It also held that conversion of Tata Sons from a public company to a private one by the RoC was "illegal".

Subsequently, the RoC, under the Union Corporate Affairs Ministry, had moved a petition seeking deletion of words "illegal" and "with the help of the RoC" on the issue of conversion of Tata Sons into a private company. The NCLAT rejected the plea for amendment in the judgment, saying it did not cast aspersions on the RoC.

On January 10, the apex court had stayed the NCLAT order restoring Mistry as executive chairman of the Tata Group, observing that there were "lacunae" in the orders passed by the tribunal. It had said the matter would require detailed hearing.