Former Tata Sons chairman Cyrus Mistry has been shocked by the supreme court’s verdict on the dispute between the Tata Group and Cyrus Mistry.
The Supreme Court on Friday delivered a remarkable judgment on this case.
The Supreme Court upheld the Tata son’s decision of Mistry’s removal as chairman.
The bench headed by Chief Justice SA Bobde commented that the decision to remove Cyrus Mistry was correct.
The National Company Law Appellate Tribunal (NCLAT) rejected the order.
This gave Tata a huge boost in the corporate war.
On December 2019, the Supreme Court struck down the NCLAT’s decision to reappoint Cyrus Mistry as Tata Son’s Chairman.
Shapoorji Pallonji (SP) group’s appeal for reasonable compensation for their shares in Tata Sons has also been rejected by the court.
It said that the SP group share value will depend on the valuation of Tata Sons’ shares and the SC will not get to determine the fair value.
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It is learned that in October 2016, Cyrus Mistry was removed from the post of Tata Sons Chairman.
Mistry moved the Mumbai Bench of the National Company Law Tribunal (NCLT) after he had opposed his removal and alleged that Tata Sons’ majority shareholder had been indulged in the oppression of the group’s minority shareholders. Mistry also argued in his case that the company’s articles of association undermined Tata Sons’ board of directors were issued by the Tata Group.
The NCLAT reinstated Cyrus Pallonji Mistry as Executive Chairman of Tata Sons and Director of the Tata Group of Companies for the remainder of his tenure in December 2019.
It also declared Tata Group’s decision to convert from a public limited company to a private company to be “prejudicial and oppressive to minority members and depositors” and thus illegal.
Mr. Ratan Tata took to twitter about the verdict.
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