Tatas petition SC against NCLAT order on Mistry

   

     The National Company Law Appellate Tribunal (NCLAT) order has restored Cyrus Mistry as Tata Sons Executive Chairman and has stated the appointment of the current chairman,N Chandrasekaran as " illegal" and also termed conversion of Tata Sons from public to private company as 'illegal'.

     Tata Sons, the holding company of the Tata Group, moved the Supreme Court with an appeal to quash this order which reinstates Mistry as the Executive Chairman. It is likely that the petition will be heard next week.

     The National Company Law Appellate Tribuna(NCLAT) said  that it would not change its judgment in the Tata Sons matter but it will however, clarify that Mumbai Registrar of Companies was only following the order of NCLAT in conversion of the company from public to private entity.

     In its plea, Tata Sons said even the Mistry investment companies had not sought Chandrasekaran’s removal as chairman and yet the NCLAT declared his appointment “illegal”, causing a disruption in the group’s functioning. 

    India’s biggest corporate feud started after Mistry was sacked by the Tata Sons board in October 2016, citing “incompetence”. Subsequently, Mistry family’s investment companies, which hold an 18.5 per cent stake in Tata Sons, moved the National Company Law Appellate Tribunal (NCLAT), Mumbai, appealing against his dismissal, but lost the case. Later, the Mistry companies moved the NCLAT, which on December 18 last year ordered Tata Sons to reinstate Mistry as executive chairman.