NCLAT reinstates Cyrus Mistry as the executive chairman of Tata Sons
New Delhi/IBNS: The National Company Appellate Tribunal(NCLAT) in an order on Wednesday reinstated Cyrus Mistry as the executive chairman of the Tata Sons and declared the appointment of N Chandrasekaran in his place illegal.
Mistry family Shapoorji Pallonji owns a minor 18 per cent stake in Tata Sons. He was removed as the Chairman of the business conglomerate in what is called a coup in 2016. He had taken over in 2012 after Ratan Tata. He was later also removed from the board of Tata Sons.
Mistry had accused Tata Sons of mismanagement and as well operating the views of the minority stakeholders.
On the other hand, Tata Sons had rejected all the accusations.
The National Company Law Tribunal(NCLT) had rejected the petitions of two firms--Cyrus Investments Pvt Ltd and Sterling Investments Corp--challenging Mistry's removal.
Mistry had then approached the NCLAT, which entertained its petition and held a prolonged hearing. The appellate body, which had reserved the order in July last, finally issued it today.
In his defense, Mistry stated again and again that his removal was not in compliance with the Companies Act and there is gross mismanagement across the conglomerate.
Tata Sons can file an appeal within four weeks as the tribunal said the reinstatement order will be operational after four weeks.
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