Sections 241 and 242 of the Companies Act, 2013 do not confer any powers on the NCLT to order reinstatement of a Director who is removed from office - Supreme Court   Mar 27, 2021

The Supreme Court of India, in the case of TCS Sons v Cyrus Investments held that Sections 241 and 242 of the Companies Act, 2013 do not confer any powers on the NCLT to order reinstatement of a Director who is removed from office and therefore the Tribunal could not have ordered reinstatement of Cyrus Mistry.

The Supreme Court held as follows:

"It is incomprehensible that the NCLAT directed reinstatement, and that too, of a Director of a company, after the expiry of his term of office.

Needless to say that such a remedy would not have been granted even by a labour court/service Tribunal in matters coming within their jurisdiction."

Copy of the judgement is attached