New Delhi: Tata Sons moved Thursday the Supreme Court challenging the restoration of Cyrus Mistry as the executive chairman of the group by the National Company Law Appellate Tribunal (NCLAT) last month.
Mistry was restored December 18 as the executive chairman of Tata Sons, by the NCLAT, three years after his dramatic sacking at a board meeting following which Ratan Tata took over as interim chairman.
In its petition, Tata Sons sought a stay on the company law tribunal’s order as well as it declaring the selection and appointment of N Chandrashekaran as chairperson as illegal.
A two-judge panel of NCLAT had said last month that Tata Sons chairman emeritus Ratan Tata’s actions against Mistry were ‘oppressive’. The tribunal had also said Tata Sons’ move to turn private was unlawful and ordered a reversal. The plan to go private had been approved by the board of the company in 2017.
Mistry had launched legal proceedings against Tata Sons after his removal from the company.
In July last year, the National Company Law Tribunal dismissed Mistry’s plea challenging his removal as chairman of Tata Sons. The NCLT said that the Tata Sons board was competent to remove him as executive chairman and that he was ejected as the board members had lost confidence in him.
Mistry then appealed to the tribunal to overturn the dismissal and, following an unfavorable ruling, appealed to NCLAT seeking to expunge disparaging remarks against him in the original order.
The Tata Sons board had removed Mistry and appointed Ratan Tata as interim chairman in October 2016. The change in the top management came about four years after Mistry had taken over from Ratan Tata.