Against NCLAT's order to make Mistry a chairman in Tata Sons Supreme

NCLAT invalidates management's decision to make Chandrasekhar chairman in Dec 18 verdict

(PTI) New Delhi, Ta. January 2, 2020, Thursday

Tata Sons Private Limited (TSPL) today filed an appeal in the Supreme Court against the NCLAT's December 18 order to reinstate Cyrus Mistry as the company's chairman. The company has challenged the full NCLAT ruling and demanded a stay on the order.

It is pertinent to mention that in his judgment of 18 December, the NCLAT invalidated the management's decision to appoint Ann Chandrasekaran as acting chairman. NCLT also disqualified the removal of Cyrus Mistry from Tata Sons chairman. The tribunal in his order ordered the reinstatement of Mistry.

Tata Sons Private Limited, formerly known as Tata Sons Limited, today demanded that the full ruling of the National Company Law Applet Tribunal (NCLAT) be rejected, saying that the judgment was contrary to the provisions of the Corporate Law.

NCLAT's verdict was a big relief to Mistry and Cyrus Investment Private Limited. It is worth mentioning that after the tribunal's order, Tata Sons had clearly stated that it would appeal the order in the Supreme Court.

The current management of Tata was given a major shock by the National Company Law Applet Tribunal (NCALT). Earlier, a Mumbai bench of the National Company Law Tribunal (NCLT) rejected the petition filed against the removal of Cyrus Mistry.

These applications were filed by Cyrus Investment Private Limited and Sterling Investment Corp. Mistry then contacted NCLAT himself.

Mistry was removed from the post of chairman of Tata Sons in October 2016. He was the sixth chairman of Tata Sons. Mistry became chairman of Tata Sons in 2012 following the announcement of Ratan Tata's retirement.

Ms Shapiroji is a member of the Pelonji family and owns 18.4% of the shares of Tata Sons. In 2016, Rutan Tata and the company board dismissed Cyrus Mistry as chairman, accusing him of misconduct. Mistry was also asked to resign from the boards of six other Tata group companies.

The Tata group said Cyrus Mistry was removed because the board had lost faith in him. The group alleged that Mistry allegedly leaked sensitive information intentionally and with intent to harm the company. Which led to a major loss in the market value of the group.