The Supreme Court on Friday said there were “basic errors" in the National Company Law Appellate Tribunal (NCLAT)’s observations and stayed the tribunal’s order reinstating Cyrus Mistry as executive chairman of Tata Sons.
“Our first impression is not good about the order of the tribunal," said a bench headed by Chief Justice S.A. Bobde. “The tribunal granted the prayer which was not prayed for."
The bench, also comprising justices B.R. Gavai and Surya Kant, said the matter needs to be heard in detail, and issued notices to Cyrus Investments Pvt. Ltd and Mistry for a hearing after four weeks.
Last month, NCLAT said that Mistry was illegally ousted in October 2016 at the behest of Ratan Tata, the chairman-emeritus of the group, and that the actions were “oppressive" for minority shareholders. It also restrained Tata and his representatives from taking any decision that would require a majority vote on the board of Tata Sons.