SC backs Tata Sons, sets aside NCLAT order on Mistry

The Supreme Court on Friday ruled completely in favor of multi­billion salt­ to software conglomerate Tata Sons Private Ltd. by setting aside a National Company Law Appellate Tribunal (NCLAT) decision to reinstate minority shareholder
Shapoorji Pallonji group’s scion, Cyrus Mistry, as its executive chairman. Mr. Mistry was initially only removed from the post of executive chairman of Tata Sons. However, his subsequent actions, including the leaking of a confidential mail to the media to create a “sensation” and passing on information to the Income Tax authorities while claiming to be a “law abiding citizen”, was an open declaration of “all­out war” against the Tatas. These led to his removal as a director, the court said.
“Cyrus Pallonji Mistry himself invited trouble,” a three ­judge Bench, led by Chief Justice of India Sharad
A. Bobde, declared in a 282­ page judgment. Chief Justice Bobde said the ouster of Mr. Mistry not only as executive chairman but also director was justified. The court dismissed allegations by Mr. Mistry of oppression of minority shareholders, such as the Shapoorji Pallonji (SP) group, by the Tatas, who hold majority stake.

Author: UINDO

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