New Delhi: The Supreme Court ruled in favour of Tata Sons on Friday, granting the conglomerates’ appeal against the NCLAT orders on reappointing Cyrus Mistry as the Chairman.
The Supreme Court set aside the orders that allowed the reappointment of Mistry as Chairman of Tata Sons. On January 10, 2020, the apex court stayed the National Company Law Appellate Tribunal’s (NCLAT) discernment.
“All the questions of law are liable to be favoured for Tata 1group. The appeals are allowed by Tata group,” Chief of Justice SA Bobde stated.
The bench, also including Justices V Ramasubramanian and A S Bopanna, had on December 17, 2020 reserved the verdict in the matter.
On December 17, Shapoorji Pallonji (SP) Group had informed the Top Court that the removal of Cyrus Mistry from the chairman of Tata Sons in a board meeting was akin to an “ambush”and “blood sport”and was in a complete violation of principles of corporate governance and pervasive violation of Articles of Association.
On the other hand, Tata Group had actively opposed the allegation and said there was no type of wrongdoing and the board meeting decision was well within its right to remove Mistry from his position.
On January 10 last year, the top court granted relief to Tata Sons group by staying the National Company Law Appellate Tribunal (NCLAT) order by which Cyrus Mistry was restored as the executive chairman of the multi-industry company.
Cyrus Mistry had succeeded Ratan Tata as the chairman of Tata Group in 2012 but was further expelled 4 years later.
Earlier, Tata Sons had told the apex court that they were not a ‘two-group company’ and there was no ‘quasi-partnership’ between it and Cyrus Investment Private Limited.
Mistry is looking forward to representation in Tata Sons in proportion to the 18.37% stake held by his family, cross-appeal stated.
Tata Group has also said that it’s open to buying out the stakes which are held by Cyrus Mistry’s family as a part of a proposal to help end the dispute.
