Ratan Tata, the honorary chairman of Tata Sons, has challenged the National Company Law Appellate Tribunal (NCLAT) decision on Cyrus Mistry in the Supreme Court. He appealed to Mistry to cancel the NCLAT's decision to reinstate the Tata Sons' chayman, saying the tribunal's decision was wrong, irrational and detached from the case. In its petition, Tata said that Mistry's decisions tarnished Tata Sons and they had completely lost the trust of the company's board of directors. In the same case, on Thursday, Tata Sons had also filed a petition in the Supreme Court, seeking to quash the NCLAT's decision.
In its petition, Tata openly defended Tata Sons, raising serious questions over the leadership of Mistry. In the petition, Ratan Tata said that Mistry had taken over the powers of the members of the Tata Sons board of directors and was tarnishing the image of the 'Tata brand'. Even after becoming the chairman of Tata Sons, Mistry did not appear willing to distance himself from his family business, with his selection stating that he would have to break away from the family business.
Ratan Tata said that Mistry had taken all the powers in his hands. This led to members of the board of directors feeling isolated in the affairs of the Tata group companies where the company had invested large amounts of capital. Ratan Tata gave the example of the failed joint business of the Tata group with the Japanese company Docomo, saying that the way Mistry handled the matter brought the Tata Group's reputation to a standstill.
Ratan Tata, one of the top entrepreneurs in the country, called the NCLAT's decision wrong, saying that the authority had ruled Tata Sons to be a company run by two groups. Mistry was chosen as the executive chairman of Tata Sons in a completely professional manner, not as a representative of the Shapoorji Pallonji Group, a company with an 18.4 percent stake in Tata Sons. He said in the petition that the NCLAT wrongly held that someone from Shapoorji Pallonji Group becomes a director of Tata Sons under a statutory right.
Ratan Tata is one of the top entrepreneurs in the country, called the NCLAT's decision wrong, saying that the authority had ruled Tata Sons to be a company run by two groups. Mistry was chosen as the executive chairman of Tata Sons in a completely professional manner, not as a representative of the Shapoorji Pallonji Group, a company with an 18.4 percent stake in Tata Sons. He said in the petition that the NCLAT wrongly held that someone from Shapoorji Pallonji Group becomes a director of Tata Sons under a statutory right.
