3 years after ousting, Cyrus Mistry restored as Tata Sons chairman by NCLAT

WION Web Team New Delhi, India Dec 18, 2019, 03.47 PM(IST)

Mistry was removed as the chairman of the salt-to-software Tata group on October 24, 2016. Photograph:( AFP )

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Mistry's re-appointment to the position comes three years after he was ousted from the Tata group's board in the year 2016.

The National Company Law Appellate Tribunal (NCLAT) on Wednesday restored Cyrus Mistry as the executive chairman of the Tata Sons Limited.

This comes as the Tribunal held Natarajan Chandrasekaran's appointment as the executive chairman as illegal.

Mistry's restoration order will be operational only after four weeks, the time allowed to Tatas to file an appeal. His re-appointment to the position comes three years after he was ousted from the Tata Sons board in the year 2016.

Mistry took over as the chairman of the conglomerate, replacing Ratan Tata in 2012 and was the sixth chairman of the group. 

The Mumbai bench of the National Company Law Tribunal (NCLT) had dismissed the petitions filed by the two investment firms Cyrus Investments Pvt Ltd and Sterling Investments Corp challenging Mistry's removal.

Later, Mistry had also personally approached the NCLAT over the NCLT order.

The Mistry camp had challenged the July 9 order of the Mumbai bench of the NCLT which dismissed the pleas against his removal as Tata Sons chairman, as also the allegations of rampant misconduct on part of Ratan Tata and the company's board.

A special bench of the tribunal had held that the board of directors at Tata Sons was 'competent' to remove the executive chairperson of the company.

The NCLT bench had also said that Mistry was ousted as chairman because the Tata Sons' Board and its majority shareholders had 'lost confidence in him.'

Two months after his removal, Mistry's family-run firms approached the NCLT as minority shareholders, against Tata Sons, Ratan Tata and some other board members.

Mistry in his pleas primarily argued that his removal was not in accordance with the Companies Act and that there was rampant mismanagement of affairs across Tata Sons. 

Tata Sons is the principal investment holding company and promoter of Tata companies.

(With inputs from ANI)