Moneycontrol
Last Updated : Feb 13, 2019 02:57 PM IST | Source: Moneycontrol.com

Court fines petitioners withdrawing case against Tatas; company directs amount to charity

The petitioners recently told the court that they wanted to withdraw the petition but the court took a dim view of it.

Tarun Sharma @talktotarun

The Bombay High Court slapped a fine against petitioners who had contested the removal of Nusli Wadia from the board of Tata group companies but later decided to withdraw the case.

The suit, filed by Janak Mathuradas and others, had sought the court’s intervention to void the promoters’ decision to vote in the resolutions proposing to remove Wadia from Tata Motors, Tata Steel and Tata Chemicals, under provisions of the Companies Act, 2013.

Wadia’s removal had taken place in the aftermath of Tata Sons’ battle with its erstwhile chairman Cyrus Mistry.

The petitioners recently told the court that they wanted to withdraw the petition but the court took a dim view of it.

“All counsels present for defendants, except counsel for defendant no 8 (Nusli Wadia) in unison state that substantial judicial time has been spent and the substantial cost has been occurred by defendants,” said Justice KR Sriram in his order of February 6.

The petitioners did not make clear their reasons for the withdrawal.

“The suit is today being withdrawn unconditionally without any reason being offered. Therefore in my view, it will only be appropriate that the costs are imposed on plaintiffs,” the court said, directing the petitioners to pay Rs 2 lakh each to respondents within six weeks from the passing of an order.

However, all the counsels who were representing defendants stated that they wanted to divert this penalty towards charity.

Hence, the court ordered petitioners to deposit Rs 2 lakh each at the Tata Memorial Hospital, Mumbai Police Welfare Fund, Free Ophthalmic Hospital Society and an NGO working for the welfare of animals Bombay SPCA and disposed of the case.
First Published on Feb 13, 2019 02:54 pm
Loading...
Sections
Follow us on
Available On
PCI DSS Compliant