8,660.2518.8
Stock Analysis, IPO, Mutual Funds, Bonds & More

Shapoorji Pallonji moves SC, says it deserves more relief

The Shapoorji Pallonji Group has appealed for a “incisive and relevant reliefs” from National Company Law Appellate Tribunal (NCLAT), arguing that NCLAT had arrived at an unequivocal finding of prejudicial conduct by the majority shareholders, but failed to provide important reliefs to put an end to the oppressive conduct by the majority shareholders.

ET Bureau|
Last Updated: Feb 18, 2020, 06.52 AM IST
0Comments
shapoorji-bccl
Mumbai: The Shapoorji Pallonji Group, which owns 18.3% stake in Tata Sons, has filed a ‘limited cross-appeal’ in the Supreme Court arguing that it deserved more “incisive and relevant reliefs” from the National Company Law Appellate Tribunal (NCLAT).

The appeal, a copy of which was seen by ET, argues that the NCLAT had arrived at a clear and unequivocal finding of prejudicial conduct by the majority shareholders of Tata Sons, but failed to provide important reliefs that would have put an end to the oppressive conduct by the majority shareholders.

The move comes less than a month after a three-judge bench headed by Chief Justice Arvind Bobde stayed an NCLAT order, dated December 18, wherein SP Group scion Cyrus Mistry was reinstated as Tata Sons chairman. The stay came on an appeal filed by Tata Group.

An official spokesperson of the SP Group confirmed the development, but refused to comment further. Generally, a ‘cross-appeal’ refers to an appeal made against certain facets of a judgement.

The SP Group has also sought proportionate representation on the board of Tata Sons by virtue of them holding 18.3% stake so as to protect its interests and investments.

The SP Group argued that while manifest abuse of power and conduct lacking in probity has been explicitly found by the NCLAT in the manner of removal of Cyrus Mistry as Tata Sons chairman, the group had not sought his reinstatement in office. What was sought instead was intervention in the form of deletion of provisions in the articles of association, which is a measure specifically provided for in Section 242 of the Companies Act, 2013.

The NCLAT had stated in its judgement that it did not have the powers to alter the articles of association.

The appeal says that NCLAT had correctly recorded that the relationship between the Tata Group and the Mistry family was in the nature of a quasi-partnership, borne out of deep personal relationship between the two groups. The appeal has produced old correspondence between the two business families, giving credence to their relationship. Handwritten letters written by Ratan Tata to Pallonji S Mistry form part of the appeal papers.

The group’s 18.3% shareholding in Tata Sons is now worth over Rs 1 lakh crore. After the NCLAT ruling, Mistry said that he was not interested in any executive position at Tata Group companies but wanted only to uphold corporate governance standards and protect his family's investment.
Comments
Add Your Comments
Commenting feature is disabled in your country/region.

Other useful Links


Copyright © 2020 Bennett, Coleman & Co. Ltd. All rights reserved. For reprint rights: Times Syndication Service