Tata vs Mistry case: Supreme Court to hear Tata Sons’ petition on January 10BusinessToday.In | New Delhi, Monday, January 6, 2020 | 19:37 IST
Tata Sons had moved the Supreme Court challenging the NCLAT order that reinstated Cyrus Mistry as chairman, saying the verdict “undermined corporate democracy” and the “rights” of its board of directors
On January 3, Tata Group patriarch Ratan Tata had also filed a petition in the apex court seeking to quash the tribunal’s order
The Supreme Court of India (SC) will hear a petition filed by Tata Sons seeking a stay on the National Company Law Appellate Tribunal’s (NCLAT) judgment that reinstated Cyrus Mistry as chairman on January 10. The petition was mentioned before the Chief Justice today after the court reopened following the winter vacation.
Last week, Tata Sons had moved the Supreme Court challenging the NCLAT order, saying the verdict “undermined corporate democracy” and the “rights” of its board of directors.
“Restoring Cyrus Mistry to the position as Chairman has undermined corporate democracy and the rights of the board of directors,” Tata Sons said in its filing.
“The NCLAT has, in one stroke of the pen, pulled down the governance and corporate structure of the appellant (Tata Sons) so painstakingly put together by its founders, in the spirit of trusteeship and responsibility, in the course of last one century,” it said.
On January 3, Tata Group patriarch Ratan Tata had also filed a petition in the apex court seeking to quash the tribunal’s order directing the group’s holding company Tata Sons to rehire the chairman it had fired in 2016. He said that the order held him guilty of oppressive and prejudicial steps against the interests of Tata Sons shareholders without explaining the factual or legal foundation.
In a fresh development, the NCLAT on Monday refused to modify its judgment passed in the Tata-Mistry matter and dismissed the petition filed by the Registrar of Companies (RoC), saying that there was no ground to amend the judgment. A two-member bench headed by Chairman Justice SJ Mukhopadhyaya dismissed RoC’s plea.
On December 18, 2019, the NCLAT ordered restoration of Mistry as the executive chairman of the Tata Group. This judgement rendered N Chandrasekaran’s appointment as executive chairman of the company illegal. However, the appellate tribunal had granted Tata group four weeks to file an appeal before the Supreme Court against its judgement.
Meanwhile, Cyrus Mistry has said that he has no plans to rejoin Tata. He, however, said that he will “vigorously pursue all options to protect our rights as a minority shareholder”.
Shapoorji Pallonji Group scion Cyrus Mistry had been engaged in a boardroom battle against Tata Sons over his unceremonious termination from the company’s board in October 2016. Mistry moved NCLAT to reverse his sacking after his appeals were turned down by the National Company Law Tribunal (NCLT). The appellate tribunal had admitted his appeal in August 2018.
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