In a victory for Tata Sons, the Mumbai bench of the National Company Law Tribunal (NCLT) on Monday ruled in favour of the steel-to-salt conglomerate and dismissed the plea by ousted chairman Cyrus Mistry.

Mistry was ousted from the board of Tata Sons after a four-year stint in October 2016.

"The judgement of the NCLT, delivered this morning has been a vindication of the actions that Tata Sons felt obliged to take in October 2016. It is a reinforcement of the principles and forthrightness that prevails in our judicial system, which should make all of us proud of our country and its democracy," Ratan Tata said in a written statement.

Mistry had cited sections 241 and 242 of the Companies Act 2013 in his appeal to the NCLT. The sections deal with shareholder oppression and mismanagement.

The bench, however, pronounced that board of directors is competent to dismiss the executive chairman, and added that Mistry's conduct does not augur well for the smooth functioning of the group.

The two-member NCLT bench comprising BSV Prakash Kumar and V Nallasenapathy also rejected the proposal by Mistry for proportional representation for his group on Tata Sons board and said that Ratan Tata's conduct was not prejudicial to the company.

The bench pronounced the verdict on the issue after a marathon hearing that lasted four months.

What Mistry plans to do next

Mistry's counsel, Somasekhar Sundaresan told CNBC-TV18 that the NCLT order was disappointing and that they will appeal the decision. Sundaresan added he has conviction and faith "in our view of good governance."