- Cyrus Mistry gets shocked by the Supreme Court, the court overturns NCLAT’s decision.
- The decision to make Mistry the executive chairman of the Tata Group has been put on hold.
- Court asks Cyrus Mistry to answer Tata Sons’ questions within four weeks.
- On 18 December, NCLAT again appointed Cyrus Mistry as Executive Chairman of the Tata Group.
The Supreme Court has stayed the decision to make Cyrus Mistry the executive chairman of the Tata Group. Bobde’s bench gave this important decision. Recently, the NCLAT gave relief to Cyrus Mistry and decided to take him back as executive chairman of Tata Group. This decision was later challenged by Tata Sons in the Supreme Court.
Supreme Court stayed the decision to make Cyrus Mistry the executive chairman of the Tata Group
On December 18, the National Company Law Appellate Tribunal ruled in favor of Cyrus Mistry. Apart from this, the appointment of N Chandrasekaran was also illegal by the tribunal. The court asked Cyrus Mistry to respond to the Tata Group’s appeal within four weeks.
Tata Sons argue – Tribunal verdict damaging to corporate democracy
Mistry challenged Tata Sons’ decision to be removed from the post of Cherryman in the National Company Law Tribunal (NCLT), but lost. After this, the Appellate Tribunal was reached. The Appellate Tribunal ruled in favor of Mistry. On the other hand, Tata Sons argued that the decision of the Appellate Tribunal is detrimental to the rights of Corporate Democracy and Board of Directors.
Would like to ensure a seat on the board of Tata Sons: Mistry
Mistry had already said before the Supreme Court ruling that he was not keen on becoming the chairman of Tata Sons or a director of TCS, Tata Tele or Tata Industries. But, as a minority shareholder, all options will adopt to protect their rights. These include getting a place on the board of Tata Sons, this has been history for the last 30 years. Improving corporate governance and bringing transparency to Tata Sons is also a priority.
Mistry lacked leadership qualities, it hurt Tata Group’s reputation: Ratan Tata
The Mistry family owns 18.4% shares of Tata Sons. Tata Sons is the holding company of the Tata Group. However, Tata Trusts hold 66% of its shares. Tata Trust chairman Ratan Tata. The Appellate Tribunal also convicted Ratan Tata in the case of the removal of Mistry. Ratan Tata has also challenged this decision in the Supreme Court. He says the tribunal gave the verdict without facts or legal basis. He lacked leadership qualities, which damaged the reputation of the Tata group.
Mistry became the chairman of Tata Sons after Ratan Tata’s retirement in 2012. Mistry resigned as director of other Tata Sons companies in December 2016 after his removal from the post of chairman and moved to NCLT. After this, Mistry removed from the board of Tata Sons.