Cyrus Mistry, the outgoing chairman of Tata Sons, plans to challenge the board decision that led to his ouster on Monday.
According to the Financial Express, Mistry plans to move the Bombay High Court challenging the decision that has resulted in Ratan Tata returning to the company as interim chairman while it looks for a replacement.
According to media reports, Shapoorji and Pallonji Group, Tata Group's company's majority shareholder has called the move 'illegal' and plans to contest it, as the decision was not entirely unanimous. Two board members did not vote for the ouster out of the eight member-board.
On Monday, Tata Group announced the move but did not state the reason behind the abrupt ousting. However, according to an NDTV report, the board meeting that led to his departure saw "unprecedented" and acrimonius scenes, suggesting that Mistry was taken off guard.
According to NDTV, which spoke to a company insider present at the meeting, Mistry's exit came up for discussion only towards the end of the board meeting. Mistry is said to have objected to the move calling it 'illegal' and a violation of the terms of Tata's rules. But the board countered the objection stating they already had legal backing supporting their decision.
The surprise sacking of Tata Sons Chairman Cyrus Mistry had apparently been under consideration for a while, according to media reports.
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While the company hasn't disclosed the reason behind the ouster, NDTV reported a board member as saying the decision was "entirely linked" to Mistry's performance as chairman.