Cyrus Mistry Vs Tata Group: Decisions taken under Chandrasekaran's stewardship to be upheld as per law, says former Sebi ED

Haribhakti  said the verdict would create a managerial blackhole and a bit of a vacuum. The Tatas will continue to manage as if there is no change. However, it is certainly a setback," he noted.

According to Gupta, NCLT and NCLAT judgements are totally opposite to each other. "As far as my understanding goes NCLT can always find the flaw in a process. So, NCLT would have determined that the process for removal of Cyrus Mistry was wrong. We have been saying right from the beginning that it was in a hurried manner and the process was not followed properly. However, NCLAT cannot say or ensure that even after Mistry is reinstated he cannot be removed after following the due process of law because you cannot take away from the shareholders the right to manage their company unless until the government puts its own management there and that is not the case. Whatever decisions Chandrasekaran has taken will be upheld because the law clearly says that even if the appointment of a director was wrong, the decisions will be binding to the company unless and until some personal malafide is there and for which the person can be prosecuted," he observed.