Supreme Court to Hear Review of Tata-Mistry Case Petition Today
The dispute case shall be heard in the chamber today by a bench consisting of Chief Justice of India NV Ramana, Justice AS Bopanna, and Justice V Ramasubramaniam.
The Supreme Court will hear an appeal today regarding the court’s ruling last year in favour of the Tatas in the ouster of the former chairman and the distribution of shares. The ruling came in the wake of a plea filed by Cyrus Investments Group in April of last year that asked for the order to be reconsidered.
In April 2021, Cyrus Mistry petitioned the Supreme Court to reconsider its March 26 order upholding Tata Son’s decision to oust him as chairman.
Today, the dispute case shall be heard in the chamber by a bench consisting of Chief Justice of India NV Ramana, Justice V Ramasubramaniam, and Justice AS Bopanna.
Last year, the Supreme Court backed Mistry’s removal, overturning a December 2019 verdict by the National Company Law Appellate Tribunal (NCLAT) that had ordered Mistry’s reinstatement as Tata Sons chairman.
The court dismissed Cyrus Investments and Sterling Investments’ claims that Mistry’s expulsion was an act of oppression against minorities, saying that all legal questions were in the Tatas’ favor.
“That failed business decisions and the removal of a person from Directorship can never be projected as acts oppressive or prejudicial to the interests of the minorities, is too well-settled,” judges had stated. The court also stated that both parties could pursue legal action in the case of a shared dispute.
After a falling out with the group’s former chairman Ratan Tata, Cyrus Mistry was dismissed as chairman of Tata Sons in October 2016.
Cyrus Investments Pvt Ltd and Sterling Investments Corporation Pvt Ltd filed a complaint with the National Company Law Appellate Tribunal in December, saying that Tata Sons had oppressed minority shareholders mismanaged the company. They also objected to Mistry’s dismissal.
The NCLT supported Mistry’s dismissal as Executive Chairman and Director in a 2017 ruling, stating that simply because Tata Sons’ board of directors held a meeting today on short notice or put the item agenda (removing Mistry from his top position) at the last minute, it can not be called a fraud.