[ By Bobby Anthony ]Tata Teleservices Ltd has moved the Supreme Court against the National Company Law Appellate Tribunal’s (NCLAT) judgment to reinstate Cyrus Mistry as director on the telecom company’s board.Incidentally, Tata Teleservices has stated in its plea that the NCLAT restored Mistry as the company’s director without even giving it an opportunity to explain the reasons behind...
Tata Teleservices Ltd has moved the Supreme Court against the National Company Law Appellate Tribunal’s (NCLAT) judgment to reinstate Cyrus Mistry as director on the telecom company’s board.
Incidentally, Tata Teleservices has stated in its plea that the NCLAT restored Mistry as the company’s director without even giving it an opportunity to explain the reasons behind his removal.
The telecom company’s plea stated that Mistry was given a chance to present his side before the resolution for his removal was passed in February 2016, but he never availed of this opportunity.
On December 18, 2019, the NCLAT’s judgment ruled that Mistry’s dismissal as chairman of Tata Sons is illegal. The NCLAT order restored Mistry to his original position as executive chairman of the Tata Group’s holding company, and also directed his reinstatement as the director of Tata Consultancy Services Ltd., Tata International Ltd and Tata Teleservices.
On January 2, 2020, Tata Sons moved the Supreme Court challenging the NCLAT’s order stated that the removal was only because there was “an untenable trust deficit” between Tata Trusts and Mistry, Tata Sons’ petition said, adding that the judgment is untenable in law as well as undermined corporate democracy, besides rights of the board of directors.
The board of Tata Sons had removed Mistry as chairman in October 2016, almost four years after he took over from Ratan Tata. Mistry first challenged his removal as executive chairman in the National Company Law Tribunal (NCLT), Mumbai, which dismissed his appeal in April 2017. In 2018, Mistry moved the NCLAT against the NCLT’s verdict.