The National Company Law Tribunal (NCLAT) on Friday declined to stay the conversion of Tata Sons into a private company.
The decision comes as another blow to former chairman of the group, Cyrus Mistry, who has been involved in a legal battle with the Ratan Tata-led conglomerate since 2016, when Mistry was ousted from the board of Tata Group.
The NCLAT has said that Tata Sons cannot force Mistry to sell his shares in the company for now, admitting Mistry’s plea against the group, and has directed to maintain status quo, reported news agency PTI.
Billionaire Pallonji Mistry, Cyrus Mistry’s father, is one of the largest shareholders in Tata Sons Ltd, according to Bloomberg. While Tata Sons has always been a closely held private entity, it was considered a public limited company due to its size under an old legal provision.
The Tirbunal has also asked Tata Sons to file a reply in 10 days, PTI said.>