Even as the NCLAT restored Cyrus Mistry as executive chairman of Tata Sons, it’s still to be seen what happens going ahead since Tatas hold four weeks to appeal before the Supreme Court, experts said.
Even as the NCLAT restored Cyrus Mistry as executive chairman of Tata Sons, it’s still to be seen what happens going ahead since Tatas hold four weeks to appeal before the Supreme Court, experts said. However, it’s a victory for Cyrus Mistry-camp as of now, the experts also said. “It’s a battle of prestige more than anything. So, from that perspective, it’s a vindication of position Cyrus Mistry had taken,” Shriram Subramanian, MD, InGovern Research told ET Now. The NCLAT may have stayed the operation of the order with respect to reinstatement for four weeks to allow Tatas to appeal before the Supreme Court, which has appellate jurisdiction over the NCLAT. It is a landmark judgment and will surely be challenged in a higher court, Alok Dhir, Managing Partner, Dhir & Dhir Associates, told ET Now, adding it is a victory for the Mistry camp.
Decisions taken and implemented by N Chandrasekaran as Chairman are done and dusted and can’t be unraveled, Shailesh Haribhakti, Shailesh Haribhakti Associates told CNBC-TV18. Tatas find themselves in a managerial black hole with NCLAT order, he also said, adding that Tata board may still have the option of voting Cyrus Mistry out again. The law is expected to uphold any decision N Chandrasekaran has taken as Chairman even if his appointment is deemed illegal, JN Gupta, Former ED, SEBI told CNBC TV-18. Amit Tandon, MD, IiAS said that this decision is very important for Mistry, but NCLAT has held the order for 4 weeks and a lot can happen in 4 weeks.
Commenting on the verdict Cyrus Mistry said, “The outcome of the appeal is a vindication of my stand taken when the then board of Tata Sons, without warning or reason removed me, first as the executive chairman, and subsequently as a director of Tata Sons.” He further said, “My endeavor as Executive Chairman had always been to establish a culture and processes that promote effective board governance to create long term stakeholder value, sustainable profits, and growth.”