In a major victory for Cyrus Mistry, the National Company Law Appellate Tribunal (NCLAT) on Wednesday restored him as executive chairman of Tata Sons, the holding company of the Tata group.
The NCLAT also held the appointment of N Chandrasekaran as executive chairman illegal. He is the current chairman of Tata Sons.
The appellate tribunal had reserved its order in July this year, after completing its marathon hearing over the issue.
However, the tribunal said the restoration order will be operational only after four weeks, the time allowed to Tatas to file an appeal.
Tata Group stocks tumbled in the last trading hour today. Tata Motors -- which traded near 7- month high in the intra-day trade today, closed at the top laggard among the Sensex pack, down 3%. Besides, TCS, Tata Global Beverages, Tata Chemicals, closed 0.02, 3.52, and 1.53 per cent lower respectively.
Cyrus Mistry was the sixth and youngest chairman of Tata Sons and took over after Ratan Tata retired in December 2012.
Cyrus Mistry is the younger son of Indian billionaire and construction magnate Pallonji Mistry. In 1930s Mistry's grandfather, Shapoorji Mistry, first acquired a stake in Tata Sons.
The Mistry family holds 18.5 per cent stake in the company and comprises the largest block of shares held by a single party. Mistry joined the board of Tata Sons on September 2006, a year after his father retired from it.
Listen to the podcast to know how the bitter courtroom battle evolved between Tata and Mistry