Tata Group shares were mixed after the NCLAT restored Cyrus Mistry as chairman of the group.
The S&P BSE Sensex was down 39.57 points, or 0.10% at 41,519.Tinplate Company of India (down 1.43%), Tata Teleservices (Maharashtra) (down 0.83%),Tata Power (down 0.81%), Tata Coffee (down 0.60%), Tata Steel (down 0.56%), Tata Steel Long Products (down 0.39%), Trent (down 0.24%), Rallis India (down 0.20%), Titan Company (down 0.08%), Indian Hotels Co. (down 0.07%) and Voltas (down 0.02%) declined.
Tata Motors (up 1.66%), Tata Chemicals (up 0.58%), Tata Global Beverages (up 0.48%), Tata Communications (up 0.24%), Tata Metaliks (up 0.22%), Tata Investment Corporation (up 0.12%) advanced.
The National Company Law Appellate Tribunal (NCLAT) on Wednesday (18 December) ruled in favour of Cyrus Mistry on petition challenging his removal as Chairman of Tata Sons. The tribunal restored Mistry as the Executive Chairman of Tata Group, holding the appointment of N Chandrasekaran as executive chairman illegal.
The NCLAT also set aside Tata Sons' decision to convert itself into a private company and accepted Mistry's argument that Tata Sons as well as its directors and shareholders acted in a prejudicial and oppressive manner towards minority shareholders.
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The group is likely to challenge the order before the Supreme Court. Chandrasekaran reportedly wrote to employees, assuring them that the conglomerate will "pursue the appropriate legal recourse". He concluded by asking all employees to "stay focussed on their businesses".
Mistry, a scion of the wealthy Shapoorji Pallonji family that owns a minority stake in Tata Sons, has been locked in a legal feud with Tata Sons and Tata family patriach Ratan Tata.
Mistry, who was the sixth chairman of Tata Sons, was ousted from the position in October 2016. He had taken over as the chairman in 2012 after Ratan Tata announced his retirement.
Two months after his removal, Mistry's family-run firms approached the National Company Law Tribunal (NCLT) as minority shareholders, against Tata Sons, Ratan Tata, and some other board members.
Mistry accused the Tatas of mismanagement and oppression of minority shareholder interests. Tata denied the charges.
NCLT had dismissed the petitions saying Mistry did not meet this condition and declined his request for a waiver.
Later, Mistry approached the NCLAT over the NCLT order.
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