Ratan Tata wins the fight against Cyrus Mistry at the Supreme Court
- India’s Supreme Court today ruled its final verdict in the Tata vs Mistry case.
- Cyrus Mistry, whose family holds a majority stake in
Tata Sons, was appointed as Chairman in 2012 and was ousted in 2016.
- The top court also said that it leaves it on the
Tata Groupand Mistry to take legal route to resolve issue of shares.
The top court said that all the laws were in favour of the Tata Group. “We cannot adjudicate on the question of compensation and they can take the route under Article 75. Order of NCLAT is set aside. Appeal by TATA group is upheld. Appeal by SP group is dismissed. Appeal by Cyrus Investments is dismissed,” said Chief Justice of India SA Bobde during the order as per legal news platform Bar & Bench.
The judgement was pronounced by CJI Bobde, Justice AS Bopanna and Justice V Subramanian.
AdvertisementThe top court further said, “We leave it to Tata Sons, Mistry to take legal route to resolve issue of shares. Value of Tata Sons shares depends on equity.”
Cyrus Mistry, whose family holds a majority stake in Tata Sons, was appointed as Chairman in 2012 and was ousted in 2016.
Here’s a timeline of the legal case so far
December 2012 – Cyrus Mistry becomes the Chairman of Tata Sons Limited
October 24, 2016 – Mistry gets removed from his position of Executive Chairman, in just four years of being at the helm by the majority of the board of directors of the company.
December 2016 – Mistry resigns from all Tata Group companies. The Mistry family also files a case in National Company Law Tribunal (NCLT) accusing Tata Sons of mismanagement and shareholder oppression.
AdvertisementFebruary 6, 2017 – Shareholders vote for the removal of Mistry from the board of Tata Sons.
February 21, 2017- Tata Sons names N Chandrasekaran, the then CEO of TCS, as Executive Chairman of Tata Sons.
July 12, 2018 - NCLT dismisses Mistry’s firm’s petition which said that Tata’s Board of Directors are competent to remove the Chairman and that no selection committee is required to remove the Executive Chairman. The same judgement also said that it can’t stop Tata Sons from being a private company. Mistry then makes an appeal to the National Company Law Appellate Tribunal.
AdvertisementDecember 19, 2019 – The National Company Law Appellate Tribunal (NCLAT) says that Cyrus Mistry’s removal as the Chairman of Tata Sons is illegal and that his position should be restored.
January 2, 2020 – Tata Sons goes on to challenge the NCLAT decision in the Supreme Court.
January 10, 2020 – Supreme Court stays the NCLAT judgment.
AdvertisementFebruary 2020 – Mistry then moves one step ahead – files a cross appeal against the NCLAT judgement.
“The NCLAT by limiting the relief granted to the appellants in connection with their prayer for Board representation, only to the remainder of Mr. Cyrus Mistry’s tenure has not secured the interest of the Shapoorji Pallonji group from any prejudicial conduct in the future”, Mistry’s petition said.
September 22, 2020 - Cyrus Mistry's Shapoorji Pallonji Group (SP Group) is restrained by the Supreme Court from pledging any shares in Tata Sons to raise funds.
AdvertisementDecember 8, 2020 – The Chief Justice of India SA Bobde leads a three-judge bench for the final hearing in the case.
December 17, 2020 – Supreme Court reserves judgment.
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