Soon after the Supreme Court ruled its final verdict in the Tata vs Mistry case, Tata Group’s Chairman Emeritus Ratan Tata “appreciated” the apex court’s judgement, saying: “It reinforces the fairness and justice displayed by our judiciary.”
Taking to Twitter, he wrote, “I appreciate and am grateful for the judgement passed by the honourable Supreme Court today.” He added, “It is not an issue of winning or losing. After relentless attacks on my integrity and the ethical conduct of the group, the judgement upholding all the appeals of Tata Sons is a validation of the values and ethics that have always been the guiding principles of the group.”
The SC on Friday ruled in favour of Tata Sons, allowing the conglomerates’ appeals against the NCLAT order reinstating Cyrus Mistry as Chairman. It set aside the order which allowed reinstatement of Cyrus Mistry as Chairman of Tata Sons.
The court, however, stopped short of adjudicating on the matter of separation between the two groups. The order leaves Tata Sons and Cyrus Mistry on their own to decide the issue of shares held by the Shapoorji Pallonji Group.
The bench headed by Chief Justice of India S.A. Bobde, and comprising Justice A.S. Bopanna and Justice V. Ramasubramanian had on 17 December last year reserved the verdict in the matter. Shapoorji Pallonji (SP) Group had told the top court on 17 December that removal of Cyrus 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.
Tata Group, on other hand, had vehemently opposed the allegations and said there was no wrong doing and the board was well within its right to remove Mistry as the chairman.
The SC had on 10 January last year granted relief to Tata group by staying the National Company Law Appellate Tribunal (NCLAT) order of 18 December 2019 by which Mistry was restored as the executive chairman of the conglomerate.
Mistry had succeeded Ratan Tata as chairman of Tata Sons in 2012 but was ousted four years later.
Tata Sons had earlier told the top court that it was not a ‘two-group company’ and there was no ‘quasi-partnership’ between it and Cyrus Investments Pvt Ltd.
In his reply to the Tatas’ petition challenging his reinstatement by the NCLAT last December, Mistry had also demanded that group chairman emeritus Ratan Tata should reimburse all the expenses to Tata Sons since his departure in December 2012 in keeping with best global governance standards.
WITH AGENCY INPUTS