New Delhi: The Supreme Court on Friday (January 10) stayed the National Company Law Appellate Tribunal (NCLAT) order that restored Cyrus Mistry as executive Chairman of Tata group. The apex court also issued a notice to Mistry and summoned him to answer questions raised by Tata's lawyer in a plea filed against the NCLAT order.
Last week, Tata Sons Private Ltd (TSPL) moved the apex court against the NCLAT's order, saying the judgement has "undermined corporate democracy" and the "rights" of its board of directors.
The appeal was heard by a three-judge bench of Chief Justice S A Bobde and Justices B R Gavai and Surya Kant.
TSPL has challenged the NCLAT's December 18, 2019 decision that gave a big relief to Cyrus Investment Pvt Ltd and Mistry, and restored the latter him as the executive chairman of TSPL.
The NCLAT had also ruled that the appointment of N Chandrasekaran as head of the holding company was illegal.
However, the NCLAT had stayed the operation of its order with respect to reinstatement for four weeks to allow Tatas to appeal in the higher court. Setting aside a lower court order, the NCLAT also quashed the conversion of Tata Sons into a private company from a public firm.
Tata Sons sought the stay on the tribunal’s order till its appeal is decided in view of the TCS board meeting on January 9.
Cyrus Mistry, a scion of Shapoorji Pallonji family, was removed as Chairman of Tata Sons in October 2016. He was the sixth chairman of Tata Sons and had taken over in 2012 after Ratan Tata. Mistry was also removed as the director on board of Tata Sons.