The Supreme Court on Friday (26 March) set aside the order of National Company Law Appellate Tribunal (NCLAT), which directed reinstatement of Cyrus Mistry as the chairman of Tata Sons Limited, reports Bar and Bench.
The NCLAT, in its order passed on 18 December 2019, had quashed the decision taken by the Board of Tata Sons in October 2016 to remove Mistry as the Chairman.
The SC verdict came on the pleas filed by both Tata Sons and Mistry challenging the December 2019 order of the NCLAT.
The three-judge bench headed by Chief Justice of India SA Bobde, and comprising Justice A S Bopanna and Justice V Ramasubramanian pronounced the judgment.
The bench had on 17 December last year reserved the judgment in the matter. Later on 10 January this year, the apex court had stayed the NCLAT verdict.
Mistry, who took over as Chairman of Tata Sons in December 2012, was removed from the post in October 2016 by the majority of the board of directors of the company.
Subsequently, at an Extraordinary General Meeting convened in February 2017, the shareholders voted for the removal of Mistry from the board of Tata Sons. Following this, N Chandrasekaran took over as Executive Chairman of Tata Sons.
Two Shapoorji Pallonji firms, who are the shareholders in Tata Sons, moved National Company Law Tribunal over Mistry’s removal, alleging “oppression” of minority shareholders and “mismanagement”.
The NCLT Mumbai bench dismissed the petitions, against which appeals were filed in NCLAT, reports LiveLaw.
The NCLAT proceeded to overturn the NCLT order prompting the current appeals before the Supreme Court.
As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.
Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.
We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.
Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.