The Supreme Court (SC) on Friday upheld the removal of Cyrus Mistry as the executive chairman of Tata Sons. At the same time, the court also dismissed Shapoorji Pallonji Group’s allegations against Ratan Tata, which alleged that the Tata Sons board was allegedly repressive against minority shareholders.
The Bench of Chief Justice SA Bobde, Justice AS Bopanna and Justice V Ramasubramaniam said, “At this stage, and in this court, we cannot decide on fair compensation. We decide to use Article 75 or any other legal way. Will leave it for the parties. “
In a 282-page judgment, the bench of Chief Justice SA Bobde and Justices AS Bopanna and V Ramasubramaniam rejected the SP Group and Mistry’s pleas against Tata Sons.
The court said, “In fact today it can be accepted by Tata Sons that the important decision taken by the board to appoint Mistry as Executive Vice President on March 16, 2012, is definitely a wrong decision of a lifetime.” Was. ”
Writing the judgment of the bench, CJI Bobde blamed Mistry and SP Group for starting a fight with the Tata group and Ratan Tata. The bench said, “It is an irony that the person who represents the shareholders of only 18.37 per cent of the total paid-up share capital of Tata Sons and still identifies him as the successor of the empire on behalf of the company’s board . Such a person is accusing the same board of suppressing the interests of minority shareholders and misbehaving with them. “
The SC blamed Mistry for attempting to set fire to the house he was assigned to protect. The court said, “In any event, the removal of a person from the post of executive chairman cannot be said to be oppressive or prejudicial.”
CJI said, “Mistry himself demanded Ratan Tata’s continued guidance, as the board chairman Cyrus Mistry had expressed his desire for his support and guidance by appointing Ratan Tata as honorary chairman, then the SP group was Calling Ratan Tata a shadow director is not right. “
The apex court said, “No Shakha can accuse a person who has chosen him as his successor. If a person has received entry through a door and then is thrown out the same door, then He cannot criticize it. “
Rejecting the claims of the SP Group companies that Tata Sons adopted repressive methods towards minority share holders like the SP Group, the Court said, “If the company has used or is pursuing oppressive or prejudicial methods against the SP Group So, we wonder how SP Group can have the highest 18 per cent stake in Tata Sons? “
At the same time, Tata Group Chairman Ratan Tata expressed happiness on this decision of the Supreme Court and welcomed the court’s decision.
Ratan Tata tweeted, “I appreciate the Supreme Court verdict and also thank the court. This case is not about defeat and victory. My honesty and moral conduct of the Tata Group were attacked. The integrity and morality of the group But the Supreme Court ruling has once again stamped the integrity and morality of the Tata Group. Justice has won and this decision has further strengthened the fairness of the judiciary. “
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