(Updates with Tata Sons statement)
MUMBAI, April 17 An Indian tribunal has
dismissed a petition by former Tata Sons' chairman Cyrus Mistry
that alleged mismanagement and discrimination against minority
shareholders at the Tata group holding company, Tata Sons said
on Monday, adding it welcomed the order.
The National Company Law Tribunal (NCLT), a quasi-judicial
body, also refused to grant a waiver to Mistry's family-owned
companies on the minimum shareholding needed to go ahead with
Tata Sons, the holding company in a business empire ranging
from car maker Jaguar Land Rover and steel mills to aviation and
salt pans, forced Mistry from the chairmanship last October, and
has since been embroiled in a public spat with him.
Mistry was also voted off the company's board in February.
Mistry had accused former Tata chairman Ratan Tata and his
associates in Tata Trusts of interfering in the running of the
various Tata group companies, launching legal proceedings in
"We are pleased that Mr. Mistry's claims have been dismissed
by the NCLT. The order of the NCLT represents a vindication of
our position," F.N. Subedar, Chief Operating Officer of Tata
Sons, said in a statement after Monday's verdict.
A spokesman for Mistry declined immediate comment.
The Mint newspaper said Mistry's side would appeal the order
at the National Company Law Appellate Tribunal (NCLAT), without
citing a source for the information.
Although Mistry's family firms own 18.4 percent of the
ordinary shares in Tata Sons, that stake falls to about 2.17
percent when preference shares are taken into account, according
to several local media reports.
Indian law requires Mistry's firms to own a minimum of 10
percent of the issued share capital of Tata Sons to be able to
file a petition alleging mismanagement and discrimination
against minority shareholders.
(Reporting by Promit Mukherjee and Devidutta Tripathy, editing
by David Evans)