In a big win for Cyrus Mistry, the National Company Law Appellate Tribunal on Wednesday ordered the restoration of him as the Executive Chairman of Tata Sons. NCLAT also held the appointment of N Chandra as Executive Chairman illegal. However, the tribunal said the restoration order will be operational only after four weeks, the time allowed to Tatas to file an appeal.
Tata shares nose-dived at the news of court upholding charges by Cyrus Mistry that he was improperly ousted as chairman of the group, making way for Mistry's reinstatement as the Tata Group Chief.
The Court has said that Ratan Tata's actions against Mistry were oppressive and the appointment of a new chairman was illegal.
Cyrus Mistry who was appointed as the sixth chairman of Tata Group in 2012 and was ousted following a boardroom coup on October 24, 2016.
Through two family-run firms -- Cyrus Investments and Sterling Investments Corp -- Mistry had moved the National Company Law Tribunal in Mumbai against Tata Sons and others for oppression and mismanagement. The tribunal had earlier dismissed the petitions.
On February 20, 2017, N. Chandrasekaran, who was heading Tata Consultancy Services, took charge as Chairman of Tata Sons which has now been declared illegal by NCLAT.
The Mistry family is the single largest shareholder in Tata Sons, with an 18.4 percent stake.