Cyrus Mistry Tata Sons

Cyrus Mistry is still a director on the board of Tata Sons despite being replaced as a chairman. (Indranil Mukherjee/AFP/Getty Images)

MUMBAI — A contempt of court petition was filed against Tata Sons Jan. 11 for calling an Extra-ordinary General Meeting to remove Cyrus Mistry as a director on its board.

According to the people with direct knowledge of the development, the contempt of court petition with the National Company Law Tribunal, Mumbai, was filed against the company and its directors by Mistry's investment firms.

Tata Sons' Board ousted Mistry Oct. 24 as its chairman and appointed Ratan Tata as the interim chairman. 

However, Mistry still remains as a director on the board of the holding arm of the $100 billion-plus group.

Tata Trusts hold a 66 percent stake in the holding company of the Tata Group, whereas Mistry's family holds just over 18 percent.

The petitioners have sought an injunction against the proposed EGM which is said to have been called Feb. 6, 2017. 

The petition alleged that the company has violated NCLT's order, which was dated Dec. 22, 2016, as it called for an EGM by issuing a special notice Jan. 3, 2017.

Tata Sons responded by saying, "There is no contempt. We will make our submissions to the NCLT."

The development comes days after Tata Sons filed an affidavit comprised of over 200 pages with the NCLT.

The affidavit, among other things, alleged that Mistry had under-performed as the chairman of Tata Sons, which led to a decline in dividend payments to Tata Trusts. 

The affidavit also pointed out that the board of Tata Sons had lost confidence in Mistry.

Earlier, Tata Sons had been served with a petition filed before the NCLT by Mistry's investment companies under Sections 241 and 242 of the Companies Act.

On Dec. 22, Tata Sons said the NCLT has not granted any interim relief to its ousted chairman.

Tata Sons also served a legal notice to Mistry alleging a breach of confidentiality by passing on sensitive information to his family-controlled companies. 

However, no damages were sought.

The holding company of the industrial conglomerate had filed a petition before the NCLT for an alleged "breach of confidentiality obligation by a director.”

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