New Delhi: New Delhi: The Supreme Court has upheld the removal of Cyrus Mistry as the executive chairman of the Tata group. With this, the court quashed the NCLAT’s decision to reinstate Mistry as the executive chairman of the Tata group. On December 18, 2019, the National Company Law Appellate Tribunal (NCLAT) reinstated Cyrus Mistry as the executive chairman of the Tata group.
The verdict has been delivered by a bench of Chief Justice Justices SA Bobde, Justice AS Bopanna and Justice V Ramasubramanian. On December 17 last year, the Supreme Court reserved the verdict. Earlier on December 2, the Supreme Court had ordered the status quo to be maintained in the case of raising capital through shares of Tata Sons by Mistry.
Shapoorji Pallonji Group counsel had argued that Mistry was removed because he was going to place a draft governance structure at the Board meeting on October 24, 2016.
“We find all the questions of law are liable to be answered in favour of the appellants (Tata Group) and the appeals filed by the Tata Group are liable to be allowed and Shapoorji Pallonji group is liable to be dismissed,” said the top court.
The top court said the value of SP Group shares will depend on the valuation by Tata Sons equities and the court will not determine the fair value.
In December 2019, the NCLAT had ruled that the proceedings of the Board meeting of Tata Sons held on October 24, 2016 removing Cyrus Mistry as chairperson was illegal.
