Tribunal Reinstates Mistry As Tata Sons Executive Chairman

Appellate body rules that decision to remove him from the top post was illegal

- Soibam Rocky Singh

Three years after Cyrus Pallonji Mistry was unceremoniously removed from the post of executive chairman of Tata Sons, the National Company Law Appellate Tribunal (NCLAT) on Wednesday ruled that the decision was “illegal”, paving the way for his reinstatement.

The replacement of the present ‘executive chairman’ and the reinstatement of Mr. Mistry will, however, come into effect after four weeks, during which Tata Sons has the option to challenge the tribunal’s verdict before the Supreme Court.

Additionally, the tribunal clarified that Mr. Mistry will be reinstated as director of ‘Tata Companies’ with immediate effect.

The tribunal also ordered Ratan N. Tata and the nominee of the ‘Tata Trusts’ to desist from taking any decision in advance which requires a majority decision of the board of directors or in the annual general meeting.