In a big personal victory for Ratan Tata against Cyrus Mistry. In a landmark ruling the National Company Law Tribunal (NCLT) has ruled in favour of Tata Sons Board on a petition filed by Cyrus Mistry challenging his dismissal as chairman. It means that Ratan Tata stands vindicated on his move.
The battle between Tata Sons and Cyrus Mistry had shocked the corporate world and sent shock waves in the 150 – year-old company.
The NCLT Mumbai’s main bench of BSV Prakash Kumar and V Nallasenapathy in its judgment said Mistry was removed because Tata Sons Board and its members “lost confidence in him” after he sent out certain crucial information about the company to the I-T Department, leaked details to the media and came out openly in public against the company’s shareholders and its board.
It may be recalled that the Board of Tata Sons had removed Mistry as its chairman on October 24, 2016 and sought his ouster from other group companies.
He subsequently resigned from the board of six firms, but dragged Tata Sons and his then interim successor Ratan Tata to the NCLT.