The NCLT rejected proportional representation for Mistry Group on Tata Sons board. "We don't find merit in arguments related to mismanagement in Tata Group companies," it said.
Tata Group stocks gained on Monday after the National Company Law Tribunal ruled in favour of Tata Sons against Cyrus Mistry's plea with regards to his removal as Tata Sons Chairman.
Tata Motors, Tata Steel, Tata Power Company, Tata Global Beverage, Tata Communications, Tata Elxsi, Tata Chemicals, Tata Teleservices (Maharashtra), Tata Investment Corporation, Tata Metaliks and Tata Sponge Iron rallied between 1 percent to 5 percent.
However, Tata Consultancy Services was the sole loser ahead of its June quarter earnings scheduled for Tuesday.
The National Company Law Tribunal (NCLT) said Mistry had allegedly leaked information to the media. "The board of directors are competent to dismiss an executive chairman. Mistry's conduct does not augur well for smooth functioning of Tata Sons."
NCLT also rejected proportional representation for the Mistry Group on Tata Sons board. "We don't find merit in arguments related to mismanagement in Tata Group companies," it stated.
It added that there is no merit in allegations regarding C Sivasankaran, AirAsia and Nano, and Ratan Tata and Soonawala of being 'super' directors. "We can't restrain Tata Sons from converting to a private company."Meanwhile, Cyrus Mistry counsel said the NCLT order was disappointing and would appeal against it.