Tata vs Mistry case: Supreme Court rules in favour of Tata, company stocks up over 2%
The Supreme Court on Friday ruled in favour of salt-to steel conglomerate Tata Group in a legal battle with its former chairman Cyrus Mistry in which the spotlight squarely fell on patriarch Ratan Tata.
Setting aside the NCLAT's (National Company Law Appellate Tribunal) order, the Supreme Court on Friday ruled in favour of salt-to steel conglomerate Tata Group in a legal battle with its former chairman Cyrus Mistry in which the spotlight squarely fell on patriarch Ratan Tata.
Mistry, whose family firm owns 18 per cent stake in the group holding company — Tata Sons, was sacked from the job after four years of his appointment in 2016 amid corporate governance issues at Tata group companies.
A three-judge bench headed by Chief Justice of India SA Bobde said it is allowing the appeals filed by Tata Group and observed that all the questions of law are in favour of Tata Group.
Dismissing all the pleas made by Mistry, the apex court ruled over NCLAT's order that had asked the Tata group to reinstate him back the chairmanship.
— Ratan N. Tata (@RNTata2000) March 26, 2021
The court said, "All the questions of law are liable to be answered in favour of the appellants Tata Group and the appeals filed by the Tata Group are liable to be allowed and those by Shapoorji Pallonji Group are liable to be dismissed."
On December 17 last year, Shapoorji Pallonji (SP) Group had told the top court that removal of 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.
The Tata Group had vehemently opposed the allegations and said there was no wrongdoing, and the board was well within its right to remove Mistry as the chairman.
Tata Sons' statement on the Supreme Court verdict. pic.twitter.com/bIvdXo3W4z
— Tata Group (@TataCompanies) March 26, 2021
The apex court had on January 10 last year granted relief to the Tata group by staying the NCLAT order by which Mistry was restored as the executive chairman of the conglomerate.
Post top court's verdict, the Tata Group stocks are buzzing heavily. Tata Steel and Tata Motors shares are gaining most of the pack with a rise over 5 per cent each. Whereas the other shares of the group are 2 per cent up.
Being greatful for the today's verdict, Tata Sons' in an official statment said, "The judgement of the Supreme Court vindicates the position of Tata Sons and upholds the governance standards adopted by the Tata group over the years."
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.