The Supreme Court on Friday, 26 March, set aside the December 2019 ruling of the National Company Law Appellate Tribunal (NCLAT) that had directed the reinstatement of Cyrus Mistry as Tata Sons chairperson, setting aside the appointment of N Chandrasekaran as executive chairperson.
The apex court allowed all the appeals filed by Tata Sons against the said NCLAT order. Meanwhile, the appeals by the SP Group and Cyrus Investments were dismissed.
Reacting to the development on Twitter, Tata group Chairman Emeritus Ratan Tata expressed gratitude over the SC’s order and said that the judgment was “a validation of the values and the ethics that have always been the guiding principle of the group”.
“It reinforces the fairness and justice displayed by our judiciary,” he added.
The court had reserved its judgment in the dispute case on 17 December last year.
"We find all the questions of law are liable to be answered in favour of the appellants, Tata Group and appeals file by the Tata Group are liable to be allowed and Shapoorji Pallonji group is liable to be dismissed [sic]," the bench of Chief Justice SA Bobde and Justices AS Bopanna and V Ramasubramanian reportedly said on Friday.
The court had stayed the NCLAT order on 10 January 2020.
The court also reportedly left it to Tata Sons and Mistry to take the legal route to resolve the issues of shares.
Reacting to the verdict, Ratan Tata, in a statement on Friday said, "I appreciate and am grateful for the judgement passed by the honourable Supreme Court today. It is not an issue of winning or losing. After relentless attacks on my integrity and the ethical conduct of the group, the judgement upholding all the appeals of Tata Sons is a validation of the values and ethics that have always been the guiding principles of the group. It reinforces the fairness and justice displayed by our judiciary."
The Tata-Mistry Dispute
Mistry, a scion of the wealthy Shapoorji Pallonji family, was removed as chairperson of Tata Sons in October 2016. He was the sixth chairperson of Tata Sons and had taken over in 2012 after Ratan Tata. He was later also removed as director on the board of Tata Sons.
Mistry and Tata family patriarch Ratan Tata reportedly fell out over key investment decisions, including manufacturing of the world's cheapest car, the Nano.
(With inputs from Bar and Bench and ANI.)
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