The National Company Law Tribunal on Thursday directed Cyrus Mistry to submit a reply to the petition filed by two firms controlled by his family against Tata Sons, to prove the allegation they made against the conglomerate. The bench also issued a stay order preventing any interim application from being filed in other courts, The Economic Times reported.
In the plea filed on Monday, Cyrus Investments and Sterling Investment Corp had accused Tata Sons of bad practices, oppression and mismanagement. It had also urged the tribunal to direct the holding company to not remove Mistry, who was ousted as the Tata Sons chairperson on October 24, from its board until the petition was disposed of.
On Thursday, the NCLT bench in Mumbai directed Tata Sons and other respondents to file a reply within a fortnight, after which the petitioner must file a rejoinder, PTI reported. The tribunal has sought documented proof from the investment firms to support the claims they made. It scheduled the next hearing in the case for January 31 and February 1.
Cyrus Investment and Sterling Investment Corp have sued Tata Sons under relevant sections of the Companies Act. Mistry’s family continues to hold more than 18% stock in the conglomerate. Ratan Tata took over as the interim chief of Tata Sons after Mistry’s ouster on October 24. On Monday, Mistry had stepped down from all companies of the Tata Group, saying it was time to be more “incisive in securing the best interests” of the firms. In his resignation letter, he accused Ratan Tata of staging “an illegal coup” against him.