A Supreme Court bench headed by Chief Justice S.A. Bobde will deliver verdict in the case between Tata Sons Pvt Ltd and Cyrus Investments Pvt Ltd, which started with the ouster of Cyrus Mistry 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 on October 24, 2016.
Arguments in court
Tata Sons had earlier told the top court that it was not a 'two-group company' and there was no 'quasi-partnership' between it and Cyrus Investments Pvt Ltd. Tata Sons had made the averments in an affidavit filed in the apex court while responding to the cross-appeal filed by Cyrus Investments seeking removal of alleged anomalies in the NCLAT order for getting representation on the TSPL's board in proportion to the stakes held by his family.
Mistry had also filed an affidavit to the apex court saying the Tata Group had an adjusted net loss of Rs 13,000 crore in 2019—the worst losses in three decades. In his reply to the Tatas' petition challenging his reinstatement by the NCLAT last December, Mistry had also demanded that group chairman emeritus Ratan Tata should reimburse all the expenses to Tata Sons since his departure in December 2012 in keeping with best global governance standards.
Mistry is seeking representation in the company in proportion to the 18.37 per cent stake held by his family, the cross-appeal has said. Reinstating Mistry as the chairman, the NCLAT had also termed the action of the Registrar of Companies to allow conversion of Tata Sons into a private limited company illegal.
-Inputs from PTI
