Jamshedpur 27th March: In a major victory for Tata Sons, the Supreme Court today backed the removal of Cyrus Mistry as the chairman of the over $100 billion salt-to-software Tata Group in 2016 and set aside the company law tribunal order that had reinstated him.
A bench headed by Chief Justice S.A. Bobde and Justices AS Bopanna and V Ramasubramanian ruled on the matter and said that the decision to remove Cyrus Mistry was correct. The Supreme Court had reserved its order on December 17 after hearing both the parties. The judges said, “All questions of law are in favor of the Tata group.”
The National Company Law Appellate Tribunal (NCLAT) had on December 18, 2019, reinstated Mr. Mistry as the executive chairman of the conglomerate. That order, challenged by the Tatas, has been terminated.
Ratan Tata said that the order recognized the values and ethics that had always guided the Tata group.
“This is not an issue to win or lose. After my relentless attacks on honesty and the group’s ethical conduct, stopping Tata Sons is a belief or value and morality that has always been the guiding principle of the group and strengthens fairness and justice demonstrated by our judiciary, ” Ratan Tata posted.
The Supreme Court reserved the judgment on December 17.
The Shapoorji Pallonji Group had then told the Supreme Court that the removal of Cyrus Mistry as Chairman of Tata Sons in a board meeting held in October 2016 was a “blood sport” and “ambush” and a complete violation of the principles of corporate governance. The extensive violation of articles of association in the process.
Tata Group has denied all allegations of wrongdoing and said that the board was within its rights to remove Mistry as Chairman.
Senior lawyer Harish Salve, appearing for Tata Group, has also offered to buy out the Mistry family’s 18% stake at fair value if required and if it could be proved that the Tata Group indulged in oppressive practices.