Tata Sons, the holding company of the salt-to-software conglomerate, has moved the Supreme Court, challenging Cyrus Mistry's reinstatement as chairperson and director on board of the group companies.

The Tatas have sought an urgent hearing on January 6 when the Supreme Court will reopen after the winter break.

In December, the National Company Law Appellate Tribunal (NCLAT) reinstated Mistry, the scion of the wealthy Shapoorji Pallonji family that owns a minority stake in Tata Sons, as executive chairman of Tata Group and ruled that the appointment of N Chandrasekaran as executive chairman of Tata Sons was illegal. A two-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya has stayed the operation of the order with respect to reinstatement for four weeks to allow the Tatas to appeal.

Setting aside a lower court order, the NCLAT also quashed the conversion of Tata Sons into a private company from a public firm.

In its appeal, Tata Sons said NCLAT lacks the jurisdiction to grant relief to Mistry. "The error that NCLAT fell into is that by issuing such a direction, it has created confusion in the working of important corporate entities, some of which are listed companies," Tata Sons said.

Mistry has been locked in a legal feud with Tata Sons and Tata family patriarch Ratan Tata after he was removed as chairman in October 2016.

The Tatas criticised the NCLAT order granting relief to Misty. The group argued that Mistry was removed as director of Tata Sons following the procedure that applies to corporate appointment and as is set out in the Companies Act, 2013.

"Instead of bringing to bear an approach that would be consistent with corporate democracy and the right of the shareholders to exercise their votes in the manner they consider appropriate, the Hon’ble NCLAT took upon itself to go into various issues alien to such consideration ... The Hon’ble NCLAT has imported principles from the realm of public law and eschewed relevant principles that apply to corporate democracy, which are based upon the right of the shareholder to cast a vote," it said in the appeal.

First Published:Jan 2, 2020 11:19 AM IST