Bringing clarity, and perhaps an end to the acrimony that rattled corporate India, the Supreme Court on Friday morning ordered in favour of Tata Sons in the Mistry case. Chief Justice S.A. Bobde ordered that all questions were to be answered in favour of Tata Sons, even while the plea of Pallonji Group will be dismissed.
This essentially is a shot in the arm for Ratan Tata and business continuity at the Tata group, as it essentially indicates that the Supreme Court refused to adjudicate on the terms of the two groups and their desired separation (SP group had indicated their eagerness to give up their shares in the Tata empire).
The appeal at the apex court had followed the sudden ouster of Cyrus Mistry as the executive chairman of the Tata Group back in 2016, just about four years after he took over from Ratan Tata as the head of the iconic steel-to-cars conglomerate. This immediately led to a protracted legal tussle between Tata Sons as well as the Pallonji Mistry, the two biggest shareholders. The National Company Law Appelate Tribunal ordered in 2019 that Cyrus Mistry be re-instated, leading to appeals in the Supreme Court by both parties.
In Friday’s order, the SC set aside the NCLAT order of December 2019 which ordered the reinstatement of Cyrus Mistry as Chairman of Tata group. The hearings had concluded in December 2020 itself. “At this stage, we cannot adjudicate on fair compensation for Pallonji group for their shareholding,” the court said.
also read
- 'Bulldozer justice simply unacceptable under rule of law': CJI D.Y. Chandrachud's final judgement
- RG Kar case: Supreme Court instructs CBI to continue investigation; junior doctors disappointed again
- SC uses extraordinary powers, orders liquidation of Jet Airways’ assets
- Justice Chandrachud's record as CJI appears to be a mixed bag
“We leave it open for parties to decide between themselves as under Article 75,” the court said. Tata stocks surged at the BSE as news of the SC decision trickled out.
