Supreme Courtroom upholds Tata Sons’ resolution to sack Cyrus Mistry as chairman

NEW DELHI: The Supreme Courtroom on Friday upheld Tata Sons’ resolution to sack Cyrus Mistry as chairman of the salt-to-software conglomerate.
The court docket pronounced its judgment on the cross appeals filed by Tata Sons and Cyrus Investments in opposition to the Nationwide Firm Regulation Appellate Tribunal (NCLAT) order which had restored Mistry as the chief chairman of the over $100 billion group.
The court docket additionally refused to entertain Shapoorji Pallonji (SP) group’s plea for honest compensation of their fairness shares in Tata Sons.
It mentioned that the worth of SP group shares will rely on valuation of Tata Sons’ equities and that the SC wouldn’t get into figuring out what must be a good worth.

A bench headed by Chief Justice S A Bobde pronounced the decision. The bench, additionally comprising justices A S Bopanna and V Ramasubramanian, had on December 17 final yr reserved the decision within the matter.
SP Group had advised the highest court docket on December 17 that removing of Mistry because the chairman of Tata Sons in a board assembly held in October 2016 was akin to a “blood sport” and “ambush” and was in full violation of rules of company governance and pervasive violation of Articles of Affiliation within the course of.
Tata Group, on different hand, had opposed the allegations and mentioned there was no wrongdoing and the board was effectively inside its proper to take away Mistry because the chairman.
The apex court docket had on January 10 final yr granted aid to Tata Group by staying the NCLAT order of December 18, 2019 by which Mistry was restored as the chief chairman.

Mistry had succeeded Ratan Tata as chairman of Tata Sons in 2012 however was ousted 4 years later in 2016.
(With inputs from PTI)

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