New Delhi, Jan 2 (IANS): The National Company Law Appellate Tribunal (NCALT) on Thursday asked the Registrar of Companies (RoC) to explain the rationale behind allowing Tata Sons to convert into a private company.

A two-member bench headed by NCLAT Chairman Justice S.J. Mukhopadhaya also sought an explanation on the due process for allowing the conversion from public to a private company. It would next hear the matter on Friday, December 3.

The appellate tribunal sought details on the paid-up capital requirement.

The RoC under the Corporate Affairs Ministry had on December 23 moved the NCLAT seeking modification in its order in the Tata Sons matter where it wants removal of the word "illegal" with respect to conversion of Tata Sons from a public company to private company which was done after the government body's approval.

After Cyrus Mistry was sacked, Tata Sons had received its shareholders' nod in September 2017 to convert itself into a private limited company from a public limited company, where there would be no need to take shareholders' consent in taking crucial decisions, which could be passed with the board's approval.

Tata Sons Ltd was initially a 'private company' but after insertion of Section 43A (1A) in the Companies Act, 1956 on the basis of average annual turnover, it assumed the character of a deemed 'Public Company' with effect from February 1, 1975, the order said.

In another development on Thursday, Tata Sons moved the Supreme Court against re-appointment of Mistry as the company's Chairman.

The firm has challenged the complete order of the NCLAT judgement, and sought a stay on it in the wake of TCS board meeting scheduled to be held on January 9.