National Company Law Appellate Tribunal (NCLAT) on Wednesday restored Cyrus Mistry as executive chairman of Tata Sons. It also held the appointment of N Chandrasekaran as Mistry's successor illegal.
Cyrus Mistry, a scion of wealthy Shapoorji Pallonji family, was in a coup removed as Chairman of Tata Sons in October 2016. He was the sixth chairman of Tata Sons and had taken over in 2012 after Ratan Tata. He was later also removed as a director on board of Tata Sons.
A fierce legal showdown followed between Tata Sons and Mistry thereafter. At the time, Mistry had accused Tata Sons of mismanagement apart from oppressing minority stakeholder views. Mistry's family owns over 18 per cent stake in Tata Sons.
Tata Sons, on the other hand, denied all charges levelled by the Mistry.
Earlier, the National Company Law Tribunal (NCLT) dismissed petitions filed by two investment firms -- Cyrus Investments Pvt Ltd and Sterling Investments Corp -- challenging Mistry's removal from the position. Mistry had then approached NCLAT.
The NCLAT challenged the NCLT's decision and ruled in September 2017 that a waiver must be granted.
The NCLAT, which had reserved its order in July this year after a prolonged hearing, has finally restored Mistry as the executive chairman of Tata Group.
In all the pleas filed by Mistry, he argued that his removal was not justified under the Companies Act and also alleged that there was mismanagement of affairs across the conglomerate.
As the situation stands, Tata Sons can now file an appeal against the order in four weeks as the tribunal said the restoration order will be operational only after four weeks.