On Friday, Supreme Court has set aside a 2019 order of the National Company Law Appellate Tribunal (NCLAT) which reinstated Cyrus Mistry as the executive chairman of the over $100 billion Tata Sons.
Apex Court Bench allowed Tata Sons' appeal, holding that well-settled principles had been overturned by the NCLAT when it decided the dispute in the previous round.
SC Bench headed by CJI Bobde expounded that,"All the appeals filed by Tata Sons against Cyrus Mistry are allowed".
Cyrus Mistry succeeded Ratan Tata as Chairman of Tata Sons in 2012 but was ousted four years later in a board meeting.
Regarding the issues relating to valuation of shares and the Shapoorji Pallonji (SP) Group pledging its shares in Tata Sons to raise funds, Bench maintained that both parties were at liberty to raise these before appropriate forum and that the court would not pass any order.
Tata Trusts, which owns a 66 per cent stake in Tata Sons, is chaired by Ratan Tata. The Mistry family owns an 18.4 per cent stake in the company.
Apex Court bench comprising of Justice A S Bopanna and Justice V Ramasubramanian, had on December 17 last year reserved the verdict in the matter.
SC Bench 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.
Picture Source :
