New Delhi, Mar 26 (ILNS) The Supreme Court today upheld the ouster of Cyrus Mistry as Executive Chairman of Tata Sons in connection with the dispute between Tata Sons Pvt Limited and Cyrus Investments Pvt Ltd.
A three-Judge bench, headed by Chief Justice of India (CJI) SA Bobde, gave its verdict on the basis of cross-appeals filed by Tata Sons Pvt Limited and Cyrus Investments Pvt Ltd on the 2019 National Company Law Appellate Tribunal (NCLAT) order reinstating Mistry.
The SC bench had reserved its judgement in the case on December 17 last year, after hearing arguments presented by a number of senior advocates, including Harish Salve, Shyam Divan and CA Sundaram.
In a judgement passed in December 2019, the NCLAT had set aside the decision taken by the Board of Tata Sons in October, 2016 to remove Mistry as the Chairman. It had triggered a bitter boardroom battle and later led to a larger dispute between the Tata Group and the Shapoorji Pallonji Group.
The Shapoorji Pallonji Group had filed petitions under Sections 241 and 242 of the Companies Act, 2013 after board members of Tata Sons removed Mistry. Cyrus Mistry’s legal counsel had claimed oppression and mismanagement in Tata Sons. While the National Company Law Tribunal (NCLT) dismissed the petitions, appeals were again filed in NCLAT.
On December 18, 2019, the NCLAT restored Mistry as the Executive Chairman of Tata Sons and had set aside the judgement given by the Mumbai bench of the NCLT, which had also upheld the appointment of N Chandrasekharan as Mistry’s replacement.