Tata group stocks including Tata Motors, Tata Global fell 5-6 percent intraday on December 18 after National Company Law Appellate Tribunal (NCLAT) restored Cyrus Mistry as executive chairman of Tata Group.
NCLAT held that appointment of Natarajan Chandrasekaran as executive chairman is illegal.
Tata Motors, Tata Motors DVR, Tata Coffee and Tata Global Beverage were down 3-4 percent while Tata Chemicals, Tata Investment Corporation and Tata Power Company fell more than 1 percent each. Tata Steel was off its day's high, up over a percent.
"Cyrus Mistry restoration order will be operational only after 4 weeks. The Registrar of Companies (RoC) decision to change Tata Sons from a public to a private company is set aside," NCLAT said.
Now Tata Group has 4 weeks to appeal before the Supreme Court.
It was quite surprising for the street. National Company Law Tribunal had dismissed the same petition ordering it in favour of Tata Sons, and then Cyrus Investment and Sterling Investment (2 investment firms owned by Cyrus Mistry) had challenged NCLT order before NCLAT.
Cyrus Mistry had been removed as Chairman of Tata Sons in October 2016 and in December same year, Mistry had moved NCLT alleging Tata Sons of oppression and mismanagement.
Cyrus Mistry had also raised objection with respect to turning Tata Sons into a private limited from public limited company. He alleged that there was severe mismanagement in various Tata Group companies - Tata Steel, Tata Motors, Tata Teleservices, AirAsia India, which turned into heavy revenue loss to Tata Sons.
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