Supreme Court Rules in Favour of Tata Group Against Mistry

The Supreme Court on March 26 ruled in favour of Tata Sons, allowing the conglomerate’s appeals against the National Company Law Appellate Tribunal (NCLAT) order reinstating Cyrus Mistry as Chairman. The apex court set aside the December 17, 2019, NCLAT order which allowed reinstatement of Mistry as Chairman of Tata Sons and as a director on the board. The SC also dismissed appeals filed by Mistry-family controlled Shapoorji Pallonji Group, which owns an 18.37 percent stake in the salt-to-steel conglomerate.

A bench comprising of Chief Justice Bobde and including Justices AS Bopanna and V Ramasubramanian pronounced the judgment. The SC bench had reserved the judgment in the case on December 17, 2020. The SC said it cannot adjudicate on fair compensation for Shapoorji Pallonji Group for their holding in Tata Group companies.
Ratan Tata, Chairman Emeritus of Tata Sons, said he is grateful for the judgment. He said, “It is not an issue of winning or losing. After relentless attacks on my integrity and the ethical conduct of the group, judgement upholding all the appeals of Tata Sons is a validation of values and ethics that have always been the guiding principles of the group,” he said in a tweet.

Further, in a statement following the verdict, Tata Sons said, “The judgement of the Hon’ble Supreme Court vindicates the position of Tata Sons and upholds the governance standards adopted by the Tata Group over the years. Tata Sons is grateful to the Hon’ble Supreme Court. Tata Group remains deeply committed to continuing its efforts towards the development of the nation and building the business, keeping the long-term interest of shareholders and the community at large,” it added.

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