Tata Group has four weeks to challenge National Company Law Appellate Tribunal's (NCLAT) order to restore Cyrus Mistry as the Executive Chairman of Tata Group. Mistry's restoration would take place only after the period of four weeks granted by the appellate tribunal.
On Wednesday, the NCLAT reinstated Mistry rendering N Chandrasekaran's appointment illegal.
The order comes after the NCLT dismissed Mistry's plea challenging his removal as the chairman of Tata Sons in July last year. The tribunal refused to accept Mistry's pleas that his removal was due to the mismanagement by the board and oppression of minority shareholders. A special bench of the tribunal had maintained that the board of directors at Tata Sons were "competent" to remove the Executive Chairman of the company. The NCLT bench stated that his removal came as the Tata Sons' board and its majority shareholders had "lost confidence in him".
Mistry then approached the NCLAT over the NCLT order.
Cyrus Mistry was removed from his position in October 2016. He was the sixth chairman of Tata Sons and had taken over after Ratan Tata announced his retirement in 2012.
N Chandrasekaran was named the chairman in January 2017. Mistry was removed from the post of director on the Tata Sons board the next month. He currently serves as the Managing Director of Shapoorji Pallonji & Company.