NEW DELHI (Reuters) – Cyrus Mistry has won backing from a tribunal for reinstatement as executive chairman of Tata Sons, the holding company behind Indian conglomerate Tata Group, lawyers said on Wednesday, knocking shares in group companies.
FILE PHOTO: Tata Group Chairman Cyrus Mistry speaks to shareholders during the Tata Consultancy Services (TCS) annual general meeting in Mumbai June 28, 2013. REUTERS/Vivek Prakash
Mistry has been embroiled in a legal battle with Tata Group since being ousted in 2016 over charges of shareholder oppression and mismanagement. reut.rs/2PVIa1c
Tata Sons has four weeks to file an appeal with India’s top court over the ruling of the quasi-judicial National Company Law Appellate Tribunal (NCLAT), one of the lawyers said.
Tata Sons and Mistry did not immediately respond to requests for a comment.
Mistry had also contested his removal as chairman and alleged inappropriate interference in the company’s affairs by family patriarch and the conglomerate’s former chairman Ratan Tata.
The NCLAT two-judge bench in its ruling deemed the appointment of current Tata Sons chairman N Chandrasekaran illegal and asked Ratan Tata to refrain from interfering, one of the lawyers said.
Tata Group is one of India’s oldest and biggest conglomerates with interests in sectors including technology, steel and automobiles.
The clash between Mistry and Ratan Tata has been one of the most high profile and publicly fought corporate battles in India.
Mistry is a scion of the Shapoorji Pallonji family that holds a minority stake in Tata Group.
Tata Trusts, a group of public charities, owns a controlling 66% stake in holding company Tata Sons and is chaired by Ratan Tata.
Reporting by Aditi Shah in New Delhi, additional reporting by Derek Francis and Chandini Monnappa in Bengaluru; editing by Rashmi Aich and Jason Neely