In a big move by National Company Law Appellate Tribunal (NCLAT) on Wednesday, Cyrus Mistry was restored as executive chairman of Tata Sons after three years. The tribunal also held that the appointment of N Chandrasekaran was illegal.
However, NCLAT said the restoration order will only be enforced after four weeks which is the time allowed to Tatas to file an appeal.
Today’s judgment isn’t a personal victory for me but is a victory for the principles of good governance & minority shareholder rights. The outcome of the appeal is a vindication of my stand, Cyrus Mistry said.
The Mumbai bench of the National Company Law Tribunal (NCLT) had earlier held that the Tata Sons board was potent enough to remove Mistry and dismissed petitions filed by the two investment firms Cyrus Investments and Sterling Investments challenging his removal.
In 2016, Mistry’s family-run firms also approached NCLT, against Tata Sons, Ratan Tata, and few other board members.
Mistry had approached the NCLAT over the NCLT order. His pleas argued that his removal was not in compliance with the Companies Act and there was mismanagement in the ways Tata Sons was functioning.
He was the sixth chairman of Tata Sons when he took over in 2012 after Ratan Tata left the company due to retirement.