In the Tata Sons and Cyrus Mistry dispute, the Supreme Court ruled in favor of the Tata Group and the Court has overturned the NCLAT’s decision ordering Cyrus Mistry to be reinstated as Chairman of the Tata Group. Tata Group Chairman Ratan Tata expressed happiness over this decision of the Supreme Court and welcomed the court’s decision.
Ratan Tata tweeted, I appreciate the decision of the Supreme Court and also thank the court. It is not a matter of defeat or victory. My honesty and moral conduct of the Tata group were attacked. The integrity and ethics of the group were attacked. But this decision of the Supreme Court has once again stamped the integrity and morality of the Tata Group. Justice has won and this decision has further strengthened the impartiality of the judiciary.
— Ratan N. Tata (@RNTata2000) March 26, 2021
The National Company Law Appellate Tribunal (NCLAT) ruled on 17 December 2019 that Mistry would be reinstated to the post of Chairman of Tata Sons. The Supreme Court overturned this decision today. However, the Supreme Court upheld the decision taken by the NCLAT on 10 January 2020.
The judgment was delivered by a bench of Chief Justice SA Bobde, Justice AS Bopanna and Justice V Ramasubramanian. The Supreme Court reserved its decision in this case on 17 December 2020.
What was the old decision of NCLAT
The NCLAT, in its order, termed the decision of October 24, 2016 invalid, in which Mistry was removed as director and chairman. The tribunal says that this decision has been taken wrongly, so now Mistry has been reinstated. The tribunal also said that N Chandrasekaran’s appointment as the new chairman of Tata Sons is illegal.
The decision was given 4 weeks to implement so that the Tata group could appeal. In the second part of the judgment, the court has said that the three companies have been asked to implement Mistry with immediate effect. This decision will apply only to the three companies from which Mistry was removed.
According to SEBI rules, any change in any company will have to be informed to the stock market because those decisions have an impact on the shares. However, the Tata group has not yet officially informed Mistry’s reinstatement to the stock market.
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