The Tata Group has moved the Supreme Court seeking a stay on the recent tribunal order that restored Cyrus Mistry as executive chairman of the group holding company. The development comes after the apex court opened on Thursday after Christmas and New Year holidays. "We have challenged the NCLAT decision in its entirety," a lawyer associated with the matter said.
The January-9 NCLAT order had termed Mistry's removal from Tata Sons and other companies as "illegal". "We are of the view that for better protection of interest of all stakeholders as also safeguarding the interest of minority group, in future at the time of appointment of the executive chairman, the Tata group should consult Shapoorji Pallonji group," the order said.
Mistry, who had contested against his abrupt removal from the company in 2016, issued a statement a NCLA verdict. "I believe it is now time that all of us work together for sustainable growth and development of the Tata Group, an institution that we all cherish," he said.
While reinstating Mistry, the NCLAT had termed N Chandrasekaran's appointment "illegal". Tata Sons Chairman N Chandrasekaran had said there would be no impact of the tribunal order on the company's day-to-day functioning.
In its order, the NCLAT also directed Tata Sons not to take any action against Mistry, whose family owns some 18 per cent interest in Tata Sons. The remaining 81 per cent is held by Tata Trusts and Tata Group companies along with Tata family members.
Mistry, scion of the wealthy Shapoorji Pallonji family, had in December 2012 succeeded Ratan Tata as the Executive Chairman of Tata Sons, a post that also made him the head of all Tata group listed firms such as Tata Power and Tata Motors.
In an overnight coup, he was removed as the Chairman of Tata Sons in October 2016. Along with him, the entire senior management too was purged and Ratan Tata was back at the helms of affairs four years after he took retirement.
Mistry challenged the removal before the Mumbai bench of National Company Law Tribunal but lost and then went in for appeal at the NCLAT.
Tatas had cited alleged failure of Mistry to "deliver on the promises that he had made at the time of his selection as the Chairman" and inability to lead the group in a cohesive manner and failure in providing proper guidance and support to the group as the reasons for his sacking.
Mistry had contended that he was removed because of his "efforts to remedy past acts of mismanagement", for resisting interference of Ratan Tata and for instituting a formal governance framework to regulate the role of Tata Trusts.
With agency inputs