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Tata Group shares in demand after SC order

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Shares of Tata Group companies advanced after the Supreme Court (SC) on Friday stayed NCLAT order reinstating Cyrus Mistry as executive chairman of Tata Sons.

Rallis India (up 3.33%), Tata Global Beverages (up 3.32%), Tata Steel Long Products (up 3.07%), Tata Power (up 2.6%), Tata Coffee (up 2.46%), Tinplate Company of India (up 1.86%), Tata Chemicals (up 1.81%), Tata Steel (up 1.81%), Tata Motors (up 0.96%), Voltas (up 0.92%), Indian Hotels Company (up 0.54%), Tata Metaliks (up 0.49%), Tata Teleservices Maharashtra (up 0.43%), Tata Communications (up 0.28%) and Tata Investment Corporation (up 0.22%) advanced.

SC on Friday, 10 January 2020, stayed the National Company Law Appellate Tribunal (NCLAT) decision to restore Cyrus Mistry as executive chairman of the Tata Group. SC noted that it looked at the judicial attitude with which the NCLAT made the 18 December order and found that it is sorely lacking.

SC asked Mistry and Shapoorji Pallonji group including Sterling Investment and Cyrus Investment to file a reply to the Tata group's appeal in four weeks.

NCLAT on 18 December 2019 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.

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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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, January 10 2020. 12:27 IST