Breaking: Supreme Court stays NCLAT order reinstating Cyrus Mistry as the Chairman of Tata sons

The Supreme Court has today stayed the National Company Law Appellate Tribunal (NCLAT) judgment which had paved the way for reinstating Cyrus Mistry as Executive Chairman of the company.

A Bench of Chief Justice SA Bobde, Justices Surya Kant and BR Gavai also issued notice in the petitions filed by Tata Sons, Ratan Tata and Tata Trustees challenging the December 18 NCLAT judgment.

The Court also stayed the operation of the NCLAT order despite vehement submissions made by Senior Counsel Aryama Sundaram representing the Respondent in favour of status quo to be maintained.

The Court observed that the order of the appellate tribunal was sorely lacking and agreed to hear the appeals on the case.

Sundaram pressed for status quo to be maintained on the grounds that in addition to direction for the reinstatement of Mistry as the Executive Director, the NCLAT order also dealt with five other aspects. A stay on the order would lead to a stay on all thsoe aspects as well.

Sundaram apprised the Court of Mistry's press statement announcing that he would not take up the position of Executive Director and the same should suffice for a stay not to be granted. Sundaram also submitted that moulding of relief by the NCLAT cannot be grounds to say that the entire order is bad.

The Court however, opined that the NCLAT order needed to be stayed and proceeded to issue notice on the same. The Respondents in the matter are directed to file their reply within four weeks.

Senior Advocates Abhishek M Singhvi, Harish Salve, Mukul Rohatgi and S N Mookherjee, briefed by Karanjawala & Co and Shardul Amarchand Mangaldas, appeared for Tata Group and assured the Court that no steps will be taken with regard to invoking powers under Article 75 of AoA.