Tata Sons moves Supreme Court over NCLAT order on Cyrus Mistry's reappointment

Tata Sons moved Supreme Court on Thursday, January 2 challenging the reappointment of Cyrus Mistry as the chairman of the company. Mistry was reinstated as the Executive Chairman of the firm through an order of the National Company Law Appellate Tribunal (NCLAT) on December 19. In its petition, Tata Sons sought a stay on the NCLAT's order, at least until the board meeting of the Tata Consultancy Services which, reportedly, is scheduled for January 9.
The counsel for the Tata group is likely to seek an urgent hearing from the top court after the Supreme Court reopens post the winter break on January 6.

Read: Tata sons to take legal recourse, after NCLAT reinstates Cyrus Mistry as group chairman

NCLAT declares Mistry's ouster 'illegal'

In a big blow to the company, Mistry was reinstated by the company law tribunal after his ouster was declared “illegal” and the appointment of his successor N. Chandrasekharan was quashed. The tribunal, in its order, had stated that the interest of the minority share holders was ignored in the “hasty” removal of Mistry as the Chairman of the Tata group. It also went on to say that Tata Sons was being “mismanaged”. 

Read: Cyrus Mistry hails his reinstatement as Tata Sons Chairman, says 'vindication of stand'

Mistry challenges removal

This ruling came following a plea filed by Mistry challenging his removal on the ground that it violated the articles of association of the company. Tata Sons had refuted this claim stating that there were no specified sections for an ouster under the articles of association and that Mistry was ejected as the directors had lost faith in him.

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