The Supreme Court on Friday has put a stay on the National Company Law Appellate Tribunal’s order which dismissed the Registrar of Companies plea seeking modification of its verdict in the Tata-Mistry case.
The three-bench comprising of Chief Justice of India SA Bobde, Justices Surya Kant and BR Gavai issued a notice to Mistry in the appeal filed by Tata Sons. The bench further said that it would hear the matter along with the main plea filed by Tata Sons against NCLAT’s verdict.
On 18 December, the National Company Law Appellate Tribunal ruled reinstating of Cyrus Mistry as the Executive Chairman of Tata Group and also titled the conversion of Tata Sons from a public company to a private by the Registrar of Companies as ‘illegal.’ Subsequently, RoC filed a plea at the appellate tribunal to remove the word “illegal” from its verdict among other observations. The RoC’s application sought amendment of paragraphs 166-187 of the NCLAT’s order, under sections 420(2) and 424(1) of the Companies Act, read along with Rule 11 of NCLAT Rules 2016.
However, on 6 January the NCLAT dismissed the Registrar of Companies’ petition seeking modification of its 18 December judgment. Later, on January 10, the SC stayed the NCLAT verdict restoring Mistry as executive chairman of the Tata group and had observed that there were ‘lacunae’ in the order passed by the tribunal.