The Supreme Court on Thursday reserved judgment in the cross-appeals filed by Tata Sons and Cyrus Investments against the National Company Law Appellate Tribunal’s (NCLAT) order which had restored Cyrus Mistry as the executive chairman of Tata Group. The bench of Chief Justice S.A. Bobde, Justices V. Ramasubramanian and A.S. Bopanna directed the parties to submit their written notes within a week.
The day’s proceedings began with Senior Advocate Shyam Divan, appearing for Cyrus Investments and Sterling Investments Pvt. Limited, taking the Supreme Court through the course of events. He submitted that the relationship of Tata Sons and Cyrus Mistry was very smooth until August 2016 after which the board resolution of August 2016 was adopted where it was informed that Ratan Tata would be joining Tata Sons soon and a request was made to Mistry to step down as Executive Chairman of Tata Sons.Divan pointed out that when Mistry was asked for a response, he sought time of 15 days. Thereafter, Mistry said that the resolution was wrong and he would seek legal advice on the motion asking him to step down as Chairman of Tata Sons.
Divan submitted that the resolution to remove Mistry was an additional item on the agenda which was against Articles 105A, 118 and 121B.