Tata Sons is likely to seek a stay on the order reinstating Cyrus Mistry as the company’s chariman. This development comes days before the Tata Consultancy Services (TCS) board meeting on January 9.
A report by the The Economic Times has claimed that Tata Sons can file an appeal in the Supreme Court on January 2, pertaining to the matter. The top court is scheduled to reopen after its annual winter break on January 6.
The Tata conglomerate was directed by The National Company Law Appellate Tribunal (NCLAT) on December 18 to reappoint Cyrus Mistry as chairman of Tata Sons and three group companies — TCS, Tata Industries and Tata Teleservices.
A source as quoted by ET said, “There is no emergency situation. It is a matter that will be pursued legally.”
After NCLAT’s direction, the only group company that has held a board meeting is Tata Sons Beverages, since it is legally not bound by the order.
ET has also quoted legal experts close to the Mistry family, one of them said as quoted, “To the best of our knowledge, reinstatement of Mistry as a Director on Tata Sons and the other companies as per the NCLAT order has not been complied with and that itself is contempt of court.”
“They (Tatas) sought a stay on chairmanship, but reinstatement as director was (to be) ‘forthwith’,” the source further added.
Another source told that Tata Sons might not risk a board meeting at this juncture, saying the Tata Sons are waiting for SC’s intervention in the matter before risking the idea of a board meeting.
Tata Sons had removed Cyrus Mistry from the role of chairman in 2016. Months later the Tata Sons had appointed N Chandrasekaran as its chairman.
The ET’s report as well says that the Tata Sons board members have contacted Chandrasekaran and assured him of all the support.