Shares of Tata Group companies witnessed a steep fell on Wednesday after National Company Law Appellate Tribunal (NCLAT) restored Cyrus Mistry as executive chairman of Tata Group.

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NCLAT also held that subsequent appointment of N. Chandra as executive Chairman was illegal.

NCLAT, after hearing both sides, had reserved order in the matter in July.

Among Tata Group stocks, Tata Motors fell 2.91 percent to end at Rs 174.95 on the BSE.

Tata Steel declined 3.34 percent from day's high. The stock ended 1.16 percent higher at Rs 444.60.

Tata Global Beverages plunged 4.14 percent to close at Rs 311.80 while Tata Chemicals ended 1.53 percent lower at Rs 644.10 on the BSE.

Tata Power fell 0.98 percent to end at Rs 55.50.

Tata Chemicals also ended 1.65 percent lower at Rs 643.30.

Tata Consultancy Services fell 1.74 percent from day's high and ended almost flat at Rs 2,167.25.

Mistry, a scion of the wealthy Shapoorji Pallonji family that owns a minority stake in Tata Sons, has been locked in a legal feud with Tata Sons and Tata family patriach Ratan Tata after he was removed as chairman in October 2016.

Mistry accuses the Tatas of mismanagement and oppression of minority shareholder interests. Tata denies the charges.

Ratan Tata heads the trusts that own a majority stake in Tata Sons. Mistry’s family firms own an 18.4 percent stake.

The National Company Law Tribunal (NCLT) had previously dismissed Mistry’s legal action on the grounds that such cases, brought by investors, require a minimum shareholding condition to be met. The NCLT had said Mistry did not meet this condition and declined his request for a waiver.

NCLAT, the appeals tribunal, ruled in September 2017 that a waiver ought to have been granted. Mistry had challenged the NCLT order before the NCLAT through his investment firms Cyrus Investment and Sterling Investment.

First Published:Dec 18, 2019 3:56 PM IST