Prime News, Nation, (New Delhi), December 18:-An appeals court on Wednesday restored Cyrus Mistry as executive chairman of Tata Group and held appointment of N Chandra as Executive Chairman as illegal.
The Appellate Tribunal had reserved its order in July this year, after completing its marathon hearing over the issue. Earlier, 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’ removal.
Later, Mistry had also personally approached the NCLAT over the NCLT order.
Mistry, a scion of the wealthy Shapoorji Pallonji family that owns a minority stake in Tata Sons, has been locked in a legal feud with Tata Sons and Tata family patriach Ratan Tata after he was removed as chairman in October 2016.
Mistry accuses the Tatas of mismanagement and oppression of minority shareholder interests. Tata denies the charges.
Ratan Tata heads the trusts that own a majority stake in Tata Sons. Mistry’s family firms own an 18.4 percent stake.
The National Company Law Tribunal (NCLT) had previously dismissed Mistry’s legal action on the grounds that such cases, brought by investors, require a minimum shareholding condition to be met. The NCLT had said Mistry did not meet this condition and declined his request for a waiver.
NCLAT, the appeals tribunal, ruled in September 2017 that a waiver ought to have been granted. Mistry had challenged the NCLT order before the NCLAT through his investment firms Cyrus Investment and Sterling Investment.
-(NAV, Inputs: Agencies)