Why the NCLAT judgement reinstating Cyrus Mistry as Tata Sons Chairman may be challenged

The National Company Law Appellate Tribunal (NCLAT) order reinstating Cyrus Mistry as Tata Sons Chairman and holding N Chandrasekaran’s appointment as illegal may not stand up to legal scrutiny, top experts told BusinessLine.

The senior lawyers told BusinessLine that some inferences drawn by NCLAT, such as nominee directors allegedly acting on behalf of Tata Trusts (and thereby Ratan Tata), a press release issued after Mistry’s removal that was prejudicial to him, and inferences drawn in the appointment of N Chandrasekaran as Tata Sons Chairman were perverse in law.

None of the legal eagles cited in this analysis, however, were willing to speak on the record as they did not want relations with current and future clients to be affected.