The Shapoorji Pallonji Mistry Group (SP Group), which owns 18.32% in Tata Sons Ltd., has filed a limited cross appeal in the Supreme Court arguing that it deserved a more incisive and relevant relief from the National Company Law Appellate Tribunal (NCLAT) order, including a proportionate representation on the board of Tata Sons.
An SP Group spokesperson confirmed the development, but refused to divulge further details. A copy of the appeals reviewed essentially argues that the NCLAT had arrived at a clear and unequivocal finding of prejudicial conduct by the majority shareholders of Tata Sons, but failed to provide certain important reliefs that would have put an end to the oppressive conduct of the majority.
The appeals seek proportionate representation on the Board of Tata Sons to ensure that its interests and investments, now worth over ₹1 lakh crore, were protected in future. The prime driver of the appeals is to secure deletion of certain specific provisions in the Articles of Association of Tata Sons.
The SP Group also prayed ‘to delete the necessity of affirmative vote in the hands of select directors under Article 121 that enables them to override the views of the entire board of directors or alternatively the requirement of an affirmative vote conferred on directors nominated under Article 104B should be restricted to matters covered by Article 121A and such rights be extended to the majority directors of the appellants group as appointed under (i) above.”
A Tata Sons spokesperson declined to offer any comment. The appellants argued that while the manifest abuse of power and conduct lacking in probity had been explicitly found by the NCLAT in the manner of the removal of Cyrus Mistry, reinstatement in office was not sought.