Cyrus Mistry, whose family holds a majority stake in Tata Sons, was appointed as Chairman in 2012.
In 2016, Ratan Tata had asked Mistry to step down from his post as the board had lost faith in him. However, Mistry’s refusal to leave had resulted in the very public spat between Tata and Mistry.
Mistry resigns from all Tata Group companies and files a case in National Company Law Tribunal (NCLT) accusing Tata Sons of mismanagement and shareholder oppression.
In July 2018 , NCLT dismisses Mistry’s firm (Shapoorji Pallonji) petition.
Mistry then makes an appeal to the National Company Law Appellate Tribunal (NCLAT)
In 2019, NCLAT stated that Cyrus Mistry’s removal as the Chairman of Tata Sons is illegal and that his position should be restored.
Tata Sons approach the Supreme Court against the decision of the NCLAT in January 2020. And Cyrus Mistry filed a cross appeal against the same NCLAT decision in February 2020.
In September 2020, the Supreme Court restricted Cyrus Mistry’s firm from pledging shares in Tata Sons.
The Chief Justice of India SA Bobde led a three-judge bench for the final hearing in March 2021.
The Supreme Court ruled in favour of the Tata Group and dismissed the order of NCLAT.
It was stated that both parties can take legal recourse to resolve the issues relating to their shares as the Supreme Court has no power to do so.