Mistry, who was the sixth chairman of the group, was removed from the position in October 2016
The National Company Law Tribunal (NCLT) dismissed on Monday Cyrus Mistry’s plea against his ouster as the chairman of the Tata Sons group and allegations of mismanagement in the company, TV news channels reported.
NCLT ruled that Mistry openly went against the board of directors, according to the reports. NCLT also said the board was competent to remove an executive chairman, a ruling that is being viewed as a vindication of the group after a long-drawn boardroom battle.
Mistry’s petition filed under the Companies Act claimed that his removal was due to the result of mismanagement by the board’s trustees and oppression of minority shareholders of the group. (TATA MOTORS SHARE PRICE)
“This has never been a battle of egos, but fight for good governance. (We) will look to appeal on all counts,” ET Now quoted Mistry’s counsel as saying.
Mohan Parasaran, counsel for Ratan Tata, told ET Now: “(We) Have to see fineprint of the NCLT order. I believe all appeals have been dismissed.” Parasaran also told CNBC-TV18 that the plea with regard to the conversion of Tata Sons into a private company would be heard later. Parasaran added that Mistry might file an appeal in 2-3 weeks against the NCLT’s order.Mistry, who took over as the chairman in 2012 after Ratan Tata announced his retirement, was removed from the position in October 2016.
His ouster sparked a lengthy corporate feud involving an unprecedented war of words in the Tata Group’s 150-year-old history. Both sides exchanged barbs through defamation suits, hundreds of affidavits and references to past emails and letters.
Mistry’s camp alleged excessive interference by Tata Trusts and said Ratan Tata’s influence was behind Mistry’s ouster. But NCLT said Mistry was removed because the board and its members lost confidence in him, according to news agency PTI.
