Supreme Court on Friday stayed the NCLAT (National Company Law Appellate Tribunal) order restoring Cyrus Mistry as executive chairman of Tata group. Last week, Cyrus Mistry announced that he is not interested in getting back to the Tata Group at any cost. His statement came ahead of the Supreme Court's hearing on an urgent petition seeking to set aside the NCLAT order reinstalling him as the group chairman and also in the board of group companies.
He said: "To dispel the misinformation campaign being conducted, I intend to make it clear that despite the NCLAT order in my favor, I will not be pursuing the executive chairmanship of Tata Sons or directorship of TCS, Tata Teleservices, Tata Industries. I will, however, vigorously pursue all options to protect our rights as a minority shareholder including a seat on the board."
Hours after Mistry's statement, Tata Sons Private Limited (TSPL) announced that it is likely to mention in the Supreme Court on Monday its petition challenging the NCLAT decision restoring Cyrus Mistry as the executive chairman of the group and saying the verdict "undermined corporate democracy" and the "rights" of its board of directors. A lawyer associated with the matter said the petition would be mentioned for urgent hearing.
The plea raised questions of law and said the order restoring Mistry to his "original position" as the executive chairman of TSPL for the "rest of the tenure" was illegal as his tenure "stood extinguished in March 2017". The plea termed "illegal" NCLAT's declaration that Chandrasekaran's appointment as the chairman of TSPL was wrong and claimed he was appointed "in accordance with the articles and duly approved by the board and shareholders".
"Mistry was replaced as the chairman of Tata Sons on October 24, 2016, by the majority of its board of directors (all directors voted in favour of the replacement, except one who abstained from voting and the remaining one was Mistry himself) for loss of confidence and the impugned judgment, by restoring Mistry to the position as chairman, has undermined corporate democracy and rights of the board of directors," the plea said.
It also said Mistry was removed following the procedure applicable to corporate appointments, as envisaged in law.
(With inputs from agencies)
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