Cyrus restored as Tata Sons chief

New Delhi, December 18

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In a big win for Cyrus Mistry, a company law appeals court on Wednesday restored him as executive chairman of Tata Sons and ruled that appointment of N Chandrasekaran as head of the holding company of over $110 billion salt-to-software conglomerate was illegal.

The National Company Law Appellate Tribunal (NCLAT) held that the group’s chairman emeritus Ratan Tata’s actions against Mistry were oppressive and the appointment of the new chairman illegal. It, however, stayed the operation of the order with respect to reinstatement for four weeks to allow Tatas to appeal.

Setting aside a lower court order, the NCLAT also quashed the conversion of Tata Sons into a private company from a public firm. It 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 later challenged the removal. — PTI