Ratan N. Tata Vs State of Maharashtra (Bombay High Court)
In, the Bombay High Court considered a criminal writ petition challenging an order of the Additional Chief Metropolitan Magistrate, Mumbai, which had issued process against several directors and officers of Tata Sons Ltd. for alleged defamation under Section 500 read with Section 34 of the Indian Penal Code. The complaint arose from Special Notices issued by Tata Sons Ltd. in November 2016 seeking the removal of an independent director from Tata Chemicals Ltd., Tata Motors Ltd., and Tata Steel Ltd. through Extraordinary General Meetings under Sections 100, 115 and 169 of the Companies Act, 2013. The complainant alleged that statements in the Special Notices were false, defamatory, and intended to damage his reputation.
The dispute originated after the removal of Cyrus Mistry as Chairman of Tata Sons Ltd. on 24.10.2016. Following meetings of independent directors of Tata Group companies, Tata Sons issued Special Notices proposing the removal of the complainant as director from three Tata companies. The notices alleged that after the developments of October 2016, the complainant had acted in concert with Cyrus Mistry against the interests of Tata companies, attempted to influence independent directors, and created risks to the companies’ expansion plans, financing, and morale. The notices further stated that the principal shareholder had lost confidence in the complainant’s independence and suitability as a director.
