The Tata Group may move to the Apex Court against National Company Law Appellate Tribunal (NCLAT’s) order to restore Cyrus Mistry as the executive chairman of Tata Sons Ltd. & director on the board of other Tata companies for the rest of the tenure. 

The group is studying the order to decide on the future course of action.

“It is not clear as to how the

order seeks to overrule the decisions taken by shareholders of Tata Sons & listed Tata companies at validly constituted shareholder meetings. 

Shuva Mandal, group general counsel, Tata Sons said that “The order appears to even go beyond the specific reliefs sought by the appellant. Tata Sons strongly believes in the strength of its case & will take appropriate legal recourse".

The National Company Law Appellate Tribunal said that the sixth meeting of the board of directors of Tata Sons held on Oct 24, 2016, so far as it relates to removal & other actions taken against Mr. Mistry, is declared illegal & is set aside.

Mr. Mistry said in a statement that “Today’s judgment is not a personal victory for me, but is a victory for the principles of good governance & minority shareholder rights. For over 50 years, the Mistry family, as the significant minority shareholder of Tata Sons, has always endeavoured to play the role of a responsible guardian of an institution that the entire nation is proud of".

The NCLAT, at the request on Tata Sons counsel Abhishek Manu Singhvi, has suspended a part of the judgment relating to replacement of the present executive chairman N. Chandrasekaran & reinstatement of Mr. Mistry as executive chairman of Tata Sons for a period of four weeks, meaning Tata Group can approach the Supreme Court to appeal against the NCLAT order.

However, the other directions, including the one ordering reinstatement of Mr. Mistry as director of Tata Sons and of three Tata companies shall be complied forthwith.

Mr. Mistry said, “The outcome of the appeal is a vindication of my stand taken when the then board of Tata Sons, without warning or reason removed me, first as the executive chairman, & subsequently as a director of Tata Sons".

Stand vindicated 

Somasekhar Sundaresan, counsel for Mr. Mistry told news agency that  “[The] Tatas now need to offer seat to Mr. Mistry on the board of Tata Sons & other companies of Tata Group. Our stand is vindicated by the NCLAT order".

Mr Mandal added, “Tata Sons assures its stakeholders that it [always] acted in accordance with the law & will continue to do so".

According to Mr. Mistry, for the Tata Group to prosper as an institution, it is important that the management of individual companies, their boards, the management of Tata Sons, the board of Tata Sons & the shareholders of Tata Sons, all work harmoniously within a robust governance framework, that in substance & form, protects the rights of all stakeholders, including shareholders, investors & the Tata Group employees who represent the strongest asset of the group.

Mr Mistry said, “I believe it is now time that all of us work together for sustainable growth & development of the Tata Group, an institution that we all cherish".

Source Link

Picture Source :