The National Company Law Appellate Tribunal (NCLAT) on December 18 restored Cyrus Mistry as executive chairman of Tata Group and ruled that the appointment of N Chandrasekaran as executive chairman is illegal.

A two-member NCLAT bench headed by Chairperson Justice S J Mukhopadhaya pronounced its judgment over the petitions.

Two months after his removal, Mistry's family-run firms approached the NCLT as minority shareholders, against Tata Sons, Ratan Tata, and some other board members.

Mistry in his pleas primarily argued that his removal was not in accordance with the Companies Act and that there was rampant mismanagement of affairs across Tata Sons.

The appellate tribunal had reserved its order in July this year, after completing its marathon hearing over the issue.

Earlier, the Mumbai bench of the National Company Law Tribunal (NCLT) had dismissed the petitions filed by the two investment firms Cyrus Investments Pvt Ltd and Sterling Investments Corp challenging Mistry' removal.

Later, Mistry had also personally approached the NCLAT over the NCLT order.

The Mistry camp had challenged the July 9 order of the Mumbai bench of the NCLT which dismissed the pleas against his removal as Tata Sons chairman, as also the allegations of rampant misconduct on part of Ratan Tata and the company's board.

A special bench of the tribunal had held that the board of directors at Tata Sons was “competent" to remove the executive chairperson of the company. The NCLT bench had also said that Mistry was ousted as chairman because the Tata Sons' Board and its majority shareholders had “lost confidence in him".

Here is a history of the feud:

October 2016

Cyrus Mistry removed as Tata Sons Chairman

December 2016

Mistry moves NCLT vs Tata Sons

Mistry alleges oppression and mismanagement

March 2017

NCLT dismisses Mistry's petition

April 2017

Mistry moves NCLAT against NCLT's dismissal of the petition

September 2017

NCLAT grants waiver to Mistry from maintainability clause

NCLAT allows Mistry to move NCLT against Tata Sons

November 2017

NCLT starts hearing Mistry's petition

July 2018

NCLT dismisses Mistry's petition again

August 2018

Mistry moves NCLAT against NCLT order

First Published:Dec 18, 2019 4:29 PM IST