NCLAT restores Cyrus Mistry as Tata Sons executive chairman after 3 years

In a big win for Cyrus Mistry, National Company Law Appellate Tribunal on Wednesday ordered restoration of him as Executive Chairman of Tata Sons. NCLAT also held appointment of N Chandra as Executive Chairman illegal. Tatas have time to file an appeal against order in four weeks as tribunal said, restoration order will be operational only after four weeks.

appellate tribunal had reserved its order in July

A two-member NCLAT bench headed by chairperson Justice S J Mukhopadhaya prounced its judgement over petitions moved by Mistry and two investment firms challenging his removal from group. appellate tribunal had reserved its order in July this year, after completing its marathon hearing over issue.

Mistry was ousted from position in October 2016

Earlier, Mumbai bench of National Company Law Tribunal (NCLT) had dismissed petitions filed by two investment firms Cyrus Investments Pvt Ltd and Sterling Investments Corp challenging Mistry' removal. Later, Mistry had also personally approached NCLAT over NCLT order. Mistry, who was sixth chairman of Tata Sons, was ousted from position in October 2016. He had taken over as chairman in 2012 after Ratan Tata anunced his retirement.

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re were also allegations of rampant misconduct on part of Ratan Tata and company’s board. A special bench of tribunal had held that board of directors at Tata Sons was “competent" to remove executive chairperson of company. NCLT bench had also said that Mistry was ousted as chairman because Tata Sons’ Board and its majority shareholders had “lost confidence in him". Mistry in his pleas primarily argued that his removal was t in accordance with Companies Act and that re was rampant mismanment of affairs across Tata Sons.

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(With PTI inputs)