‘Cyrus Mistry’s ouster an act of oppression’

MUMBAI: The decision to remove Cyrus Mistry as executive chairperson of Tata Sons was “an act of oppression to get minority shareholder to toe the line", senior counsel C A Sundaram, appearing for minority shareholders, argued before

National Company Law Tribunal

(NCLT) in Mumbai on Monday.

Sundaram reiterated how Mistry’s sudden removal in October 2016 by Tata Sons’ board was without “any good reason as his performance was, in fact, praised in the preceding months”. He said that the removal was not even on the agenda at the meeting but was brought in to “silence the minority".

A bench at NCLT, headed by judicial member B S V

Prakash Kumar

, resumed a hearing in a petition filed by two companies, held by the Mistry family, alleging acts of oppression and mismanagement committed by Tata Sons, in which they hold 18% minority shares.

“There is an attempt to change the status quo which was there for 30 years, of a director— from the

Pallonji

group—being on board…If the aim is to silence the minority, it is ex facie oppressive…there has to be proportionate representation on the board," Sundaram argued. “You want a position on the board?" the NCLT judicial member observed. The tribunal asked for the definition of ‘mismanagement’ when Sundaram said he would give examples of how Tata Sons was being mismanaged.