New Delhi: Hours after the National Company Law Appellate Tribunal (NCLAT) reinstated him as executive chairman of Tata Sons, Cyrus Mistry on Wednesday termed the judgment as a vindication of his stand and called for a robust governance framework to protect all stakeholders. In a massive victory for Mistry, the NCLAT today ruled out that the appointment of N Chandrasekaran as the head of the holding company of salt-to-software conglomerate was illegal and restored him as the chairman. On October 24, 2016, the Tata Sons Board had ousted Mistry and appointed Ratan Tata as the interim Chairman.

"Today's judgment is not a personal victory for me, but is a victory for the principles of good governance and minority shareholder rights. For over fifty years, the Mistry family, as the significant minority shareholder of Tata Sons, has always endeavoured to play the role of a responsible guardian of an institution that the entire nation is proud of," Mistry said in a statement after the judgment.

"The outcome of the appeal is a vindication of my stand taken when the then Board of Tata Sons, without warning or reason removed me, first as the Executive Chairman, and subsequently as a Director of Tata Sons," he said.


"My endeavour as Executive Chairman had always been to establish a culture and processes that promote effective board governance to create long term stakeholder value, sustainable profits and growth," the statement read further.

However, soon after the judgement by the tribunal, the Tata Group companies holding firm, Tata Sons said that it will take appropriate legal recourse after the NCLAT restored Cyrus Mistry as its Executive Chairman. "Tata Sons has received and is analysing the order of the National Company Law Appellate Tribunal," Tata Sons said in a statement.

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"It is not clear as to how the NCLAT order seeks to overrule the decisions taken by shareholders of Tata Sons and listed Tata operating companies at validly constituted shareholder meetings," company's statement said.

As per the statement, the NCLAT order appears to go even beyond the "specific reliefs" sought by the Mistry. "Tata Sons strongly believes in the strength of its case and will take appropriate legal recourse," it added.

According to Mistry, for the Tata Group to prosper as an institution, it is important that the "management of individual companies, their Boards, the management of Tata Sons, the Board of Tata Sons and the shareholders of Tata Sons, all work harmoniously within a robust governance framework...."

NCLAT, in its order, also ruled that Tata Sons' move to turn private was unlawful and ordered a reversal. It also gave the holding firm of the Tata Group four weeks to appeal the order.