Shares of Tata Group firms extended gains on BSE and NSE today after Supreme Court (SC) stayed NCLAT order reinstating Cyrus Mistry as executive chairman of Tata Sons.
Tata Global Beverages share traded 3.32% higher followed by 2.5% gain in Tata Power and Tata Coffee. Share prices of Tata Chemicals and Tata Steel were trading 1.8% higher each. Tata Motors stock rose 1% on BSE.
Similarly, shares of Tata Metaliks and Tata Teleservices Maharashtra traded 0.45% higher. Tata Communications and Tata Investment Corporation advanced 0.25% each.
A three-judge Supreme Court bench on Friday noted that NCLAT "seems to have committed errors in adjudicating and seems to lack powers to pass the directions that it has."
The SC added that it looked at the judicial attitude with which the NCLAT passed the December 18 order and found that it was sorely lacking.
On December 18, the National Company Law Appellate Tribunal said Tata Sons illegally removed Mistry as chairman three years ago at the behest of Ratan Tata, calling the action of the chairman-emeritus "oppressive" for minority shareholders.
NCLAT ruled in favour of Cyrus Mistry, restoring him as the executive chairman of Tata Sons. The tribunal also ruled that the appointment of N Chandrasekaran as head of the holding company of the $110-billion salt-to-software conglomerate was illegal.
Following this, Tata Sons Private Ltd (TSPL) moved the SC against NCLAT's order last week, saying the judgement "undermined corporate democracy" and the 'rights' of its board of directors. "Restoring Cyrus Mistry to the position as Chairman has undermined corporate democracy and the rights of the board of directors," Tata Sons had said in its filing.