Mistry camp pleads NCLT to waive shareholding requirement

In its ongoing battle against the Tatas, Cyrus Mistry camp on Monday filed an affidavit with the NCLT seeking "waiver" from the condition of shareholding requirement in the petition filed by his family-owned two investment firms against Tata Sons, Ratan Tata and its directors, even as it argued for its maintainability.

Tata Sons had argued that maintainability of the petition filed by Cyrus Investments Pvt Ltd and Sterling Investments Corporation Ltd should be "determined on the basis of the issued share capital" Tata Sons.

"...Assuming whilst denying that the petition as filed is not maintainable under section 244(1) of the Act, the petitioners are making this application seeking a waiver or exemption from the requirements of Section 244(1)," the Mistry camp said in an affidavit filed through an authorised representative.

It further said: "Although the petitioners do not meet the strict legal requirements of Section 244(1)(b) because of the number of 'members' in the Registrar of members, the reality of the matter is that they constitute one of the two groups of members in a very closely held company," the affidavit said.

The Section 244 of the Company's Act 2013, enables any member or members holding not less than one-tenth of the issued share capital of the company to file a petition.

It also says "Tribunal may, on an application made to it in this behalf, waive all or any of the requirements" to enable the members to apply under section 241.

Raising a series of issues, including alleged "serious prejudice and oppression", the affidavit said "for all these reasons, it is in the interest of fairness and justice that this company application may be allowed as prayed for and the company's petition may be entertained on merits."