- Wednesday, April 24, 2024
By: Radhakrishna N S
INDIAN conglomerate Tata Sons has approached the country’s top court, Supreme Court on Thursday (2) questioning the restoration of Cyrus Mistry as the executive chairman of the group.
In a petition, Tata Sons sought a stay on the company law tribunal’s order.
It also sought a stay ruling the selection and appointment of N Chandrashekaran as its chairperson as illegal.
Last month, an Indian appeals court the National Company Law Appellate Tribunal (NCLAT) had restored Mistry as the executive chairman of India’s oldest conglomerate.
Mistry was restored as the executive chairman of Tata Sons by the NCLAT.
He was sacked in a company’s board meeting in 2016 after which Tata Sons chairman emeritus Ratan Tata took over as the interim chairman.
The change in the top management came about four years after he had taken over from Tata.
In December 2016, Mistry resigned as director from all Tata Sons companies and moved the NCLAT alleging oppression of minority shareholders and mismanagement.
In 2017, Tata Sons named N Chandrashekaran as chairman after which Mistry was removed from the post of director on the Tata Sons board.
Chandrasekaran was the first non-Parsi to be appointed as chairman of Tata Sons.
Mistry started a legal battle against Tata Sons after his removal from the group.
A two-member judge panel of the NCLAT said on December (18) that Ratan Tata’s actions against Mistry were oppressive.
The tribunal also said Tata Sons’ move to turn private was unlawful and ordered a reversal.
Tata Sons’ board had approved a plan to go private in 2017.
Last year, the NCLAT rejected Mistry’s petition questioning his removal as chairman of Tata Sons.
The NCLAT ruled that the Tata Sons board was competent to remove him as executive chairman.
It further added that Mistry was ejected as the board members had lost confidence in him.
Mistry works as managing director at his family business Shapoorji Pallonji & Company.
Mistry joined the board of Tata Sons in 2006.
