Tata Mistry tussle: TCS & TTSL join Tata Sons and Ratan Tata; challenge NCLAT order in SC

Amid the rising opposition to Cyrus Mistry's reappointment, reports state that the Tata Teleservices Ltd (TTSL) and Tata Consultancy Services (TCS) have approached the Supreme Court on Friday seeking dismissal of the National Company Law Appellate Tribunal (NCLAT)'s ruling on December 18. These are in addition to the petitions filed by two trustees of the Tata Trusts and the Chairman Emeritus Ratan Tata himself who has moved the court on a personal capacity. All petitions are set to be heard by Chief Justice of India on Monday - January 6.

Tata Sons moves Supreme Court over NCLAT order on Cyrus Mistry's reappointment

TCS, TTSL approach SC

The trustees of  Sir Dorab Tata Trust and Sir Ratan Tata Trust and Noshir Soonawala who is a former Tata Trusts trustee have moved the apex court. They have stated that the premise of the NCLAT judgement  of a majority shareholder group (Tata Group) and minority shareholder group (Shapoorji-Pallonji Group) is factually and conceptually wrong. They are seeking the dismissal of the judgement which stated that the board meeting removing Mistry was 'illegal' and had been set aside.

Meanwhile, TCS and TTSL on the other hand, have contested the ruling which re-instated Mistry as the executive chairman of the board, as per reports. They have reportedly stated that Mistry was removed following an Extraordinary General Meeting (EGM) held on December 14, 2016, and he was not present at the meeting. The Chairman Emeritus has challenged that the NCLAT's conclusion of 'a relationship akin to a partnership between the Tata Group and the Shapoorji Pallonji Group'.

Tata sons to take legal recourse, after NCLAT reinstates Cyrus Mistry as group chairman

Mistry reinstated as Chairman

Earlier on December 18, awarding a massive victory to the Mistry, the NCLAT ruled in his favour on his petition challenging his removal as Chairman of Tata Sons. The NCLAT had stated that the board meeting removing Mistry was 'illegal' and had been set aside. Moreover reinstating him as executive chairman of Tata Sons, the NCLAT also set aside the change of Tata Sons from the public to private. The Tatas were given four weeks to appeal said the tribunal, as the restoration order will be operational only after four weeks.

'Restoring Cyrus Mistry undermines corporate democracy': Tata Sons to SC

Mistry challenges ouster

Mistry had appealed to the NCLT Mumbai December 2016 after he was ousted as Tata Sons chairman. While his initial pleas were rejected, on August 29, the NCLAT finaly admitted Mistry's plea in his personal capacity challenging his ousting and ruled in his favour in December. Reports state that the reason for Mistry's ouster was due to his constant disagreement with Tata chairman emeritus Ratan Tata on various deals with the flashpoint reportedly being when Mistry greenlighted Tata Power’s $1.4-billion acquisition of Welspun’s solar farms without allegedly seeking approval from key shareholders of Tata Sons or Tata himself. The Tata Trusts - including the larger ones like Sir Dorabji Tata Trust and Sir Ratan Tata Trust — together control about 66% of Tata Sons, while the Mistry family owns an 18.4% stake in Tata Sons, which amounts to 3% if preferential shares are excluded.

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