NCLAT termed Ratan Tata’s actions against Mistry as oppressive and declared the appointment of a new chairman as illegal.
The National Company Law Appellate Tribunal (NCLAT) order appears to even go beyond the specific reliefs sought by appellant Cyrus Mistry, Tata Sons said on Wednesday after the tribunal ruled in favour of the sacked Tata chairman.
Mistry was restored as the Executive Chairperson of the Tata Sons by the NCLAT on Wednesday, three years after he was sacked at a board meeting. Mistry said the judgment is "not a personal victory" but a "victory for the principles of good governance".
The order, which also declared the appointment of a new chairman as illegal, will take effect after four weeks.
Reacting to the judgment, Tata Sons said it strongly believes in the strength of its case and will take appropriate legal recourse.
Tata Sons has the option to challenge the ruling in the Supreme Court.
In a statement issued after the NCLAT verdict, Mistry said, "Today's judgment is not a personal victory for me, but is a victory for the principles of good governance and minority shareholder rights. For over fifty years, the Mistry family, as the significant minority shareholder of Tata Sons, has always endeavoured to play the role of a responsible guardian of an institution that the entire nation is proud of."
"The outcome of the appeal is a vindication of my stand taken when the then board of Tata Sons, without warning or reason removed me, first as the executive chairman, and subsequently as a director of Tata Sons," he said.
Mistry was chosen by a selection panel to head the Tata Group after Ratan Tata had announced his retirement in 2012. However, he was ousted from his post four years later, when in 2016 a board of Tata Group's holding company, Tata Sons, voted to remove Mistry as the chairperson and named Ratan Tata as interim chairman. Natarajan Chandrasekaran was later named the new chair.
A two-judge panel of NCLAT termed Ratan Tata’s actions against Mistry as oppressive and declared the appointment of a new chairman as illegal.
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