Wednesday, January 1, 2020

Tata Sons case: NCLAT ready to expunge remarks against RoC; seeks details

The National Company Law Appellate Tribunal (NCLAT) has said that it is ready to remove the strictures against the Registrar of Companies, Mumbai from its order that said Tata Sons conversion from public to private entity was illegal and directed the RoC to reverse the same.

NCLAT adjourned the hearing till tomorrow and has sought clarification from RoC on what constitutes a private company.

RoC Mumbai had sought the removal of the words "illegal" and “with the help of RoC" in the tribunal’s order pertaining to Tata Sons' transition from a public to private company, in September 2017.

In the order dated December 18, the NCLAT had passed serious strictures against the RoC, stating that Tata Sons had hurriedly changed its status to a private company from public "with the help of the RoC", which was illegal. NCLAT chairperson, Justice S J Mukhopadhaya said, “The finding may be wrong but the judgment is not.”

In its petition, the RoC said there were some factual and legal errors in the judgment, and hence appealed to the appellate tribunal to amend the order so that it correctly reflected the conduct of the RoC, Mumbai, as not being illegal and acting in accordance with the provisions of the Companies Act 1956/2013.

"The appellate tribunal be pleased to delete the aspersions made regarding any hurried help accorded by the RoC, Mumbai, to Tata Sons except what was statutory required from the RoC, Mumbai," the petition stated.

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