The Supreme Court allowed Tata Sons’ appeals against the NCLAT order reinstating Cyrus Mistry as the corporation’s executive chairman, on Friday. The Tatas have hailed the decision as a victory.
The bench, which included CJI S.A. Bobde, Justices A.S. Bopanna and V. Ramasubramanian, has therefore endorsed Tata Sons’ elimination of Mistry in October 2016 as a correct decision.
“All matters of law are beneficial in regard of the Tata Group,” CJI Bobde said. All of the Tata Group’s applications have been approved. We are unable to make a decision on the issue of just compensation. All appeals are granted, and the NCLAT’s order is reversed.”
On December 17 of last year, the bench reserved orders in the matter. On December 17, 2019, the NCLAT reinstated Cyrus Mistry as the Tata conglomerate’s executive chairman. Mistry was reinstated by the NCLAT in 2019 after the Mumbai bench of the NCLT rejected the Shapoorji Pallonji Group’s petitions alleging mismanagement and injustice in the Tata House. Mistry is a scion of the Shapoorji Pallonji Group, which owns a minority stake in Tata.
The minority shareholders, according to Mistry, were being exploited by Tata Sons’ decision. The Tatas, on the other hand, said that consulting stockholders for appointments was against the company’s bylaws.