This Article is From Jan 02, 2020

Tata Group Shares Spike After Tatas Go To Supreme Court Over Cyrus Mistry's Reappointment

NCLAT had restored Mr Mistry as executive chairman of Tata Group and ruled appointment of N Chandrasekaran as executive chairman of Tata Sons, illegal

Tata Group Shares Spike After Tatas Go To Supreme Court Over Cyrus Mistry's Reappointment

Tata Steel had jumped 2.9 per cent and Tata Motors had soared 3.1 per cent on the BSE

Tata Group companies' shares are trading higher, in sync with the strength in domestic markets, after Tata Sons moved the Supreme Court against the National Company Law Appellate Tribunal (NCLAT) order favouring Cyrus Mistry. 

It may be recalled that in December 2019, NCLAT had reinstated Mr Mistry as executive chairman of Tata Group and ruled that appointment of N. Chandrasekaran as executive chairman of Tata Sons was illegal. The two-member NCLAT bench had given four weeks to Tata Sons to appeal against the order in the Supreme Court.

Tata Sons has challenged the NCLAT judgement and sought a stay on it in the wake of TCS board meeting, scheduled on January 9. Tata's lawyers will seek urgent hearing on the matter after apex court reopens on Jan 6, after the year-end break.

Mr Mistry's family owns some 18 per cent interest in Tata Sons and the remaining 81 per cent is held by Tata Trusts, Tata Group companies and Tata family members.

At 1.15pm, Tata Steel had jumped 2.9 per cent at Rs 482 and was also leading the pack of most active stocks in value terms on the BSE, and Tata Motors had soared 3.1 per cent at Rs 190. Among the other Tata companies, Rallis India had appreciated 3.4 per cent at Rs 180 and Trent had firmed up by 1.6 per cent at Rs 538. TCS had, however, edged lower by 0.4 per cent at Rs 2,160.

The Sensex was quoting at 41,555 and the Nifty was at 12,260 at the time.

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