After Tata Sons, Ratan Tata and two Tata firms—Tata Consultancy Services (TCS) and Tata Teleservices have moved the Supreme Court challenging NCLAT verdict.
The Tata petition will be mentioned before the Chief Justice of India on Monday who will decide on the hearing date, according to a report in Business Standard.
On 18 December, the National Company Law Appellate Tribunal (NCLAT) directed the $110-billion Tata group to reinstate Cyrus Mistry as the executive chairman of Tata Sons. The National Company Law Appellate Tribunal (NCLAT) also held the appointment of present executive chairman, N Chandrasekaran illegal.
The NCLAT directed the conglomerate to reappoint Cyrus Mistry as chairman of Tata Sons and three group companies – TCS, Tata Industries and Tata Teleservices.
After Ratan Tata, Tata Sons, TCS & Tata Tele have also moved SC challenging NCLAT judgment, reports @AshmitTejKumar
— CNBC-TV18 (@CNBCTV18Live) January 3, 2020
In his petition, Tata has made several observations.
The NCLAT judgment of 18 December has pulled down governance and the corporate structure of Tata Sons which was painstakingly put together by its founder, said Tata. The impugned judgment has severely affected the rights of the Tata Trusts, its nominated directors and has undermined shareholder rights, he said.
Tata had approached Mistry on 24 October 2016, requesting him to step down as executive chairperson. He refused to step down, leading to a formal motion brought to the board of Tata Sons on the same day, the plea said.
The financial performance under Mistry's tenure, was 'also deeply unsatisfactory'. He said, gradually there was a complete loss of trust in the ability of Cyrus Mistry to lead Tata Sons from the front and for the future. Mistry also failed to timely capitalise on business opportunities when they presented themselves.
The Docomo litigation brought disrepute to Tata Sons. This is not what the Tata Sons brand stands for. Honouring commitments is one of the highest virtues of Tata Sons, he said.
The Board members were being alienated on matters relating to Tata Operating Companies, decision was made and then cast on board members. This was evident from the instances of Tata Motors’ rights issues and the Welspun transaction.
Mistry was reluctant to timely and meaningfully disassociate himself from his family business after he became the Chairman, causing conflict. Mistry had also concentrated power and authority in his own hands as Chairman in all major Tata Operating Companies, Tata said in his petition.
--With inputs from agencies
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Updated Date: Jan 03, 2020 14:39:10 IST