The National Company Law Appellate Tribunal (NCLAT) delivered a body blow to the 150-year-old, $110-billion, salt-to-software Tata group when it reinstated former chairman Cyrus Mistry, who was unceremoniously removed in October 2016. It also asked current Tata Sons chairman N. Chandrasekaran to resign. That’s not all. The appellate tribunal, whose decision can be appealed only in the Supreme Court, has ordered reversal of the Tata group’s decision to convert holding company Tata Sons into a private limited firm from a public entity. None of these were anticipated.
The NCLAT has, in fact, reversed the 2018 order of the National Company Law Tribunal (NCLT), which had dismissed Mistry’s petitions.
Tata group needs a stay from the SC against the NCLAT shocker within four weeks to maintain status quo. However, if the SC upholds any of the orders of the NCLAT, it will not just be a huge embarrassment but would also leave one of India’s largest groups, with over 100 companies, in disarray. The order tests the supremacy of Ratan Tata, who appears checkmated for now. It could also mean the Pallonji Mistry family, the second-largest stakeholder after Tata Trusts in the Tata group, may have a greater say. And it could leave current chairman Chandrasekaran in a spot.
What happens next? In his letter to Tata employees after the judgement, Chandrasekaran said, “Tata Sons firmly believes in the strength of our case and will pursue the appropriate legal recourse.”
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the {{IssueName}} edition of {{MagazineName}}.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
"Moving to cloud helped us grow❞
What was the problem you were grappling with?
She's Got Time
MORE WOMEN ARE BECOMING WATCH CONNOISSEURS, SEEKING OUT BOTH JEWELLED AND TECHNICAL WATCHES FOR THEIR STYLE AND CRAFTSMANSHIP
RISING STAR
PARUL GULATI IS a name that's been steadily gaining prominence in the Indian entertainment industry after she appeared on season 2 of Shark Tank in 2023. She has become a multifaceted personality who effortlessly transitions between acting and entrepreneurship.
Building on a Legacy
WHEN ZAHABIYA KHORAKIWALA stepped into her role as Managing Director of Wockhardt Hospitals over a decade ago, she confronted formidable challenges that have since turned into achievements.
LEADER IN INNOVATION
AS FEDEX'S PRESIDENT (Middle East, Indian subcontinent and Africa), Kami Viswanathan has a lot on her plate.
WAITING IN THE WINGS
Here are those who missed out as they have not yet completed a year in office; they'll be strong contenders in 2025
A DECENT PROPOSAL
IN TODAY'S WORLD OF TRYING TO CREATE AN EQUITABLE SPACE, BOTH MEN AND WOMEN CONTRIBUTE TO THEIR HOUSEHOLDS. WOMEN ARE ENCOURAGED TO HAVE THEIR OWN SAVINGS POOL AND INVESTMENT ROUTINE. GIVEN THIS, HOW SHOULD FUTURE BRIDES APPROACH FINANCIAL PLANNING?
Women and the STEM Bias
EMPOWERING WOMEN IN STEM WILL NOT ONLY BENEFIT INDIVIDUALS, BUT ALSO STRENGTHEN THE ENTIRE INDUSTRY, DRIVING INNOVATION AND PROGRESS.
ROCKET WOMEN
WOMEN IN INDIA ARE NOT ONLY VENTURING INTO SPACE BUT ARE ALSO STARTING TO SPEARHEAD THE COUNTRY'S EFFORTS IN THE GLOBAL SPACE RACE.
ONE STEP FORWARD
THE NUMBER OF WOMEN INDEPENDENT DIRECTORS IS GROWING STEADILY, BUT IT'S A LONG WAY FROM GENDER PARITY. MUCH MORE NEEDS TO BE DONE TO BREAK THE GLASS CEILING IN BOARDROOMS.
