‘Vindication’: Mistry After NCLAT Restores Him As Tata Sons Head
NCLAT also held appointment of N Chandra as executive chairperson illegal.
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In a big win for Cyrus Mistry, the National Company Law Appellate Tribunal (NCLAT) on Wednesday, 18 December, ordered restoration of him as the executive chairperson of Tata Sons.
Responding to NCLAT’s decision, Mistry, in a statement on Wednesday evening, said, “Today’s judgment isn't a personal victory for me, but is a victory for the principles of good governance and minority shareholder rights. The outcome of the appeal is a vindication of my stand.”
NCLAT also held appointment of N Chandrasekaran as executive chairperson illegal.
However, the tribunal also said the restoration order will be operational only after four weeks, the time allowed to Tatas to file an appeal, PTI reported.
The NCLAT ruled Mistry’s dismissal as chairperson of Tata Group’s holding company as illegal, while also setting aside the change of Tata Sons from public to private company, reported BloombergQuint.
Mistry had approached the appellate tribunal against the verdict of Mumbai NCLT, which had dismissed the challenge to his removal as chairperson as Tata Sons. The appellate tribunal had reserved its judgment after completion of arguments from both sides in July this year, it further reported.
The judgment was pronounced by a two-judge bench headed by Justice SJ Mukhopadhyay.
Removed in Coup
Mistry, a scion of wealthy Shapoorji Pallonji family, was in a coup removed as chairperson of Tata Sons in October 2016. He was the sixth chairperson of Tata Sons and had taken over in 2012 after Ratan Tata. He was later also removed as director on board of Tata Sons.
Mistry and Tata family patriarch Ratan Tata had reportedly fell out over key investment decisions, including manufacturing of world's cheapest car Nano.
(With inputs from PTI and BloombergQuint.)
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