Tata Sons has welcomed the April 17, 2017 order of the National Company Law Tribunal (NCLT) which has ruled that the petitioners representing companies of the SP Group of former Chairman Cyrus Mistry have failed to establish the merits of the petition, and have also failed to demonstrate any cause of action against Tata Sons, the Tata Trusts and Ratan N. Tata.
The Tribunal said it did not see a prima facie triable case to take forward. “The order of NCLT vindicates the position of Tata Sons, the Tata Trusts and Mr Tata,” Tata Sons said in a statement.
N. Chandrasekaran, Executive Chairman, Tata Sons said, “The Tata group, led by Tata Sons, has always been committed to the highest ethical standards and principles of governance. We welcome the NCLT’s order, and it is an endorsement of these values and principles.”
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“Tata Sons and the operating companies are focussed on growth to deliver value to our shareholders, and we thank all stakeholders for their continued support,” he added.
Tata Sons said as per the NCLT order the SP Group Companies failed to establish a case of mismanagement and oppression and could not provide any evidence in support of their claims. It said the SP Group Companies’ economic interest had not been affected in the manner in which Tata Sons was operated.
NCLT said there were no grounds to support allegations relating to past transactions including cross-border acquisitions and business decisions of Operating Companies and the Tata Trusts had not exercised their shareholder rights in a manner oppressive to the SP Group Companies.
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Tata Sons said NCLT said the allegations against Mr. Ratan N. Tata were vague and lacked any material details.