New Delhi: In a big jolt to Cyrus Mistry, the Supreme Court on Friday stayed the order of the National Company Law Appellate Tribunal (NCLAT) which reinstated him as chairman of Tata Sons. The development comes days after Tata Consultancy Services (TCS) approached the top court and challenged the NCLAT judgement, directing reinstatement of Mistry as the director of the company.
In the petition, Tata group patriarch Ratan Tata had alleged that in an instance of conflict of interest, Mistry was reluctant to disassociate himself from his family business even after he became the chairman of Tata Sons. The business tycoon also mentioned that disassociation from his family business, the Shapoorji Pallonji Group, was a precondition for Mistry’s appointment as Tata Sons Chairman.
On January 5, Mistry had said that he has ‘no interest in getting back into the company in any capacity’. “I intend to make it clear that despite the NCLAT order in my favour, I will not be pursuing the executive chairmanship of Tata Sons, or directorship of TCS, Tata Teleservices or Tata Industries”, Mistry said in a statement.
In 2012, Mistry was appointed as the sixth chairman of Tata Group, but he was later removed after a boardroom coup broke out on October 24, 2016. Mistry had taken over as the chairman after Ratan Tata announced his retirement.