The National Company Law Appellate Tribunal (NCLAT) on Wednesday restored Cyrus Mistry as executive chairman of Tata Sons.
The National Company Law Appellate Tribunal (NCLAT) on Wednesday restored Cyrus Mistry as executive chairman of Tata Sons, CNBC TV-18 reported. Since the restoration order will be operational after four weeks, Tatas have a time of four weeks to file an appeal. In addition, the tribunal held that the subsequent appointment of N Chandrasekaran as the executive chairman is illegal, the report added. NCLAT also quashed the conversion of Tata Sons into a private company from a public firm. The apellate tribunal was scheduled to pronounce its judgment over the petition moved by Cyrus Mistry and the two investment firms challenging his removal from the group. Former Tata Group chairman Cyrus Mistry, the sixth chairman of Tata Sons, was removed from the position in October 2016. After Ratan Tata announced his retirement, Cyrus Mistry took over as the chairman of the group in 2012.
The July 9, 2o18 order by the Mumbai bench of NCLT which dismissed the petitions against ouster as Tata Sons chairman was challenged by the Mistry camp. In July 2019, the appellate tribunal reserved the order after completion of the hearing in the issue. “Today’s judgment isn’t a personal victory for me, but is a victory for the principles of good governance&minority shareholder rights. For over fifty years, the Mistry family, as the significant minority shareholder of Tata Sons, has always endeavoured to play the role of a responsible guardian of an institution that the entire nation is proud of,” Cyrus Mistry said in a statement.
The former Tata Group chairman Cyrus Mistry had petitioned that his ouster was not in accordance with the Companies Act. He had also alleged gross mismanagement across Tata Sons. On August 3 last year, Cyrus Mistry had approached the appellate tribunal challenging the July 9, 2018 order of the Mumbai bench of NCLT which dismissed his petition challenging his ouster as the chairman of the firm. Shares of Tata group including Tata Motors, Tata Power, Tata Chemicals and Tata Global Beverages fell up to 4 per cent after the announcement.