Ousted chairman of Tata Group Cyrus Mistry moved National Company Law Tribunal against the industrial giant on Tuesday, a day after he resigned from all Tata Group companies.
Mistry moved the tribunal citing “oppression and mismanagement” by the company, reports The Economic Times.
Earlier, Mistry had ruled out chances of a truce with Ratan Tata, claiming his fight is for larger issue of governance and that he will slug it out without giving up his family's 18.5 percent holding in the $103-billion conglomerate.
In his statement announcing his resignation from the firm, Mistry said:
By removing myself from general meetings, I reinforce my position that this is not a fight for position but to secure reform.
However, a counter-statement from Tata Group has dismissed the various allegations made in Mistry’s statement, calling it a “deliberate strategy”.
Mr Mistry’s resignation is a deliberate strategy on his part, knowing fully well that the overwhelming majority of the shareholders were not in support of his actions.
In another official statement, Tata Sons also announced their decision to contest the allegations put forth by Mistry in the court.
Tata Sons is in consultation with its lawyers and will contest the allegations therein. Tata Sons reiterates that it has followed the highest standards of corporate governance in its operations and views the Petition as an unfortunate outcome of the situation arising from Mr. Mistry’s complete disregard of the ethos of the Tata Group and Jamsetji Tata. Despite, Mr Mistry’s recent assertions that it is not a personal issue, it is evident that it always has been for him a personal issue which reflects his deep animosity towards Mr Ratan N Tata.
Terming his fight a "movement for cleaning up governance and regaining lost ethical ground," Mistry had said, "It is time to shift gears, up the momentum and be more incisive in securing the best interests of the Tata Group.”
He said he has decided to "shift this campaign to a larger platform and also one where the rule of law and equity is upheld".
(With PTI inputs)
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