Cyrus Mistry Seeks Review of SC Judgment Backing Tata Group
Last month, the apex court had backed Mistry’s removal, after a company law tribunal had reinstated him.
Cyrus Mistry's Shapoorji Pallonji Group approached the Supreme Court seeking a review of its judgment endorsing the Tata Group's decision to remove him as the chairman.
In a judgment last month, the Supreme Court had backed Mistry’s removal, setting 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.
The SC had said, "That failed business decisions and the removal of a person from directorship can never be projected as acts oppressive or prejudicial to the interests of the minorities, is too well-settled. In fact it may be conceded today by Tata Sons that one important decision that the Board took on 16.03.2012 certainly turned out to be a wrong decision of a life time (sic).”
Days after the Tata Group's victory in one of the most high-profile boardroom legal standoffs in recent memory, Mistry said in a statement:
"As a minority shareholder of Tata Sons, I am personally disappointed by the outcome of the judgment with respect to our case. Although I will no longer be able to influence the direction of governance of the Tata group directly, I hope that the issues I have raised, will cause deeper reflection and influence individuals concerned to catalyse change. I sleep with a clear conscience.”
The Tata-Mistry Dispute
Mistry, a scion of the wealthy Shapoorji Pallonji family, was removed as the 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 of 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, Nano.
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