National Company Law Appellate Tribunal (NCLAT) on Wednesday restored Cyrus Mistry as executive chairman of Tata Sons.
Cyrus Mistry, who comes from a family that owns a minority stake in Tata Sons, was tangled in a legal battle with the conglomerate after he was removed as chairman in October 2016. The tribunal has also held the appointment of N Chandrasekaran as executive chairman illegal.
A fierce legal showdown followed between Tata Sons and Mistry thereafter. At the time, Mistry had accused Tata Sons of mismanagement apart from oppressing minority stakeholder views. Mistry’s family owns over 18 percent stake in Tata Sons.
Tata Sons, on the other hand, denied all charges levelled by the Mistry.
In all the pleas filed by Mistry, he argued that his removal was not justified under the Companies Act and also alleged that there was mismanagement of affairs across the conglomerate.
Now, Tata Sons can now file an appeal against the order in four weeks as the tribunal said the restoration order will be operational only after four weeks.