Cyrus Mistry and Cyrus Investments Private Limited have filed four caveats in NCLT (National Company Law Tribunal) against Ratan Tata, Tata Group and Tata Trusts, PTI reported. Three of the four caveats have been filed by Mistry against Ratan Tata, Tata Sons and Sir Dorabji Trusts. One caveat has been filed by Cyrus Investments Pvt Ltd against Ratan Tata and Tata Sons. Tatas on their part have filed a caveat in the Supreme Court, High Court and NCLT to prevent Cyrus Mistry from getting ex-parte order against his sacking.
In a shocking move, the Tata Sons Board has appointed Ratan Tata as the interim chairman of the group, replacing Cyrus Mistry. The Board has constituted a Selection Committee to choose a new Chairman. The Committee comprises Ratan N. Tata, Venu Srinivasan, Amit Chandra, Ronen Sen and Lord Kumar Bhattacharyya, as per the criteria in the Articles of Association of Tata Sons. The committee has been mandated to complete the selection process in four months.
Cyrus Mistry had in December 2012 become the sixth chairman of the Tata Group, replacing Ratan Tata. Mistry had been the director of the company since 2006. Mistry was earlier managing director of the Shapoorji Pallonji Group. The unceremonious dismissal of Mistry — attributed to his performance — had the backing of the Tata Trusts, which hold a commanding 66% stake in Tata Sons. He, however, remains a director on the board.
Mystery surrounds the sudden decision by Tata Sons Board, but the analysts consensus is that Mistry’s sacking relates to performance-based issues. Meanwhile, Ratan Tata met Tata Group CEOs earlier in the day and told them to not read too much into the speculations. He said that the group would continue to focus on its core values and strengths. Pepsico’s Indra Nooyi and Tata International MD Noel Tata have emerged as contenders for the post of Tata Group Chairman, reported CNBC-TV 18.