In a big win for Tata Sons, the Supreme Court on Friday set aside a National Company Law Tribunal judgment that ordered the reinstatement of ousted Chairman Cyrus Mistry. The apex court allowed the appeal of Tata Sons, answering all questions of law framed in the case in its favour, LiveLaw reported.
The top court held that the actions of Tata Sons board against Mistry did not amount to oppression of minority shareholders or mismanagement. The court also dismissed appeals by Shapoorji Pallonji Group and Cyrus Investments.
The bench, also comprising Justices A S Bopanna and V Ramasubramanian, had on December 17 last year reserved the verdict in the matter.
Shapoorji Pallonji (SP) Group had told the top court On December 17 that removal of Cyrus Mistry as the chairman of Tata Sons in a board meeting held in October 2016 was akin to a blood sport and ambush and was in complete violation of principles of corporate governance and pervasive violation of Articles of Association in the process.
Tata Group, on other hand, had vehemently opposed the allegations and said there was no wrong doing and the board was well within its right to remove Mistry as the chairman.
The apex court had on January 10 last year granted relief to Tata group by staying the National Company Law Appellate Tribunal (NCLAT) order of December 18, 2019 by which Mistry was restored as the executive chairman of the conglomerate.
Mistry had succeeded Ratan Tata as chairman of Tata Sons in 2012 but was ousted four years later.
