Tata vs Mistry Battle Ends
In a sudden decision, the NCLAT has reinstated Cyrus Mistry as the Chairman of Tata Group. Watch the video to know about the bitter rivalry between Ratan Tata & Cyrus Mistry.
In 2012 Cyrus Mistry, was appointed the chairman of Tata Group when Ratan Tata retired.However, four years after the appointment, Mistry was suddenly removed in October 2016 after a fight with Ratan Tata over important investment decisions.After Mistry was removed, in February 2017, Natarajan Chandrasekaran became the Chairman. Cyrus Mistry’s family had moved the National Company Law Tribunal (NCLT).
The Mistry family said that they own 18.4% stake in the shares of Tata group.Mistry’s family said that people with less shares were oppressed and forced to accept decisions of the Tata officials. They even said that various Tata officials did not manage the company properly. They have blamed 20 Tata officials including Ratan Tata. Mistry said that Ratan Tata sent Cyrus Mistry 550 emails. They showed this as proof and said that Tata would always interfere in the Mistry’s work. The case has been going since 2016. In July 2017, the NCLT said that Tata Group did nothing wrong. They felt Mistry was not working properly and they removed him because they lost confidence in him.
Mistry then filed an appeal with the National Company Law Appellate Tribunal (NCLAT). The NCLAT has said that the sudden removal of Mistry was very wrong. NCLT said that Ratan Tata was very oppressive and kept interfering and did not let other officials make decision. This has surprised the entire business community.NCLAT also said that the Appointment of N Chandrasekaran as the chairman was illegal. NCLAT has re-instated Cyrus Mistry as the Chairman of Tata.After 4 weeks Mistry will resume work as the Chairman. In these 4 weeks, Tata group can file an appeal in the Supreme Court.