Tata Group: NCLAT appointed Cyrus Mistry as chairman

Cyrus Mistry was reinstated as chairman of the Tata Group by the National Company Law Appellate Tribunal (NCLAT) on Wednesday.

The tribunal has also said that it was illegal to make N Chandra the executive chairman of the Tata Group. A two-judge bench of the NCLAT said that Ratan Tata had acted arbitrarily against Mistry and that the appointment of the new chairman was illegal. Tata Group is a $ 110 billion company.

Ratan Tata has been given four weeks to challenge this decision. The tribunal has said that its decision will come into force only after four weeks.

Tata also has the option to challenge this decision in the Supreme Court. As soon as this news came, Tata Motors shares started falling. The Mistry family holds the largest stake in Tata Sons. The Mistry family has an 18.4% stake in Tata Sons.

Cyrus Egyptian was the sixth chairman of Tata Sons. He was removed in October 2016. Cyrus Mistry was given command of the Tata group following the retirement of Ratan Tata in 2012.

When Mistry was removed, he claimed that he had been sacked for violating the Companies Act. Along with this, he also alleged a flaw in the management of Tata Sons.

The NCLAT has also stated that it was illegal for Tata Sons to become a public-to-private company. The NCLAT has again ordered it to become a public company.

It is being said that with this decision, Tata is once again stuck in legal stitches and this will affect the company's profits. Tata will take the matter to the Supreme Court but it will affect the investors.

Tata's corporate governance is also being questioned.