Cyrus Mistry was removed from the position of president of Tata Sons in October 2016.
New Delhi:
The dispute between Tata Group and Cyrus Mistry will again be under the prism of the Supreme Court tomorrow. The judges agreed to hear an appeal to review last year’s court decision in favor of Tatas about removing the former president and dividing the shares. A bench of Chief Justice of India NV Ramana, Justice AS Bopanna and Justice V Ramasubramaniam will review the matter in the room tomorrow.
In March last year, a bench headed by Chief Justice of the Indian Courts of India SA Bobde supported the removal of Cyrus Mistry from the post of Executive Chairman of Tata Group, granting a court order the company law had reinstate him.
Rejecting calls by Cyrus Investments and Sterling Investments – two firms backed by the Mistry family – that Mr Mistry’s removal was an example of oppression of the minority, the court said all questions of the law are in favor of the Tatas.
“Failed business decisions and the removal of a person from the position of Director, which can never be seen as oppressive or prejudicial to minority interests, are all too well-arranged.” , the judges said. The court also said both parties can take legal avenues regarding the equity dispute.
Cyrus Mistry was removed from the position of chairman of Tata Sons in October 2016 following differences with the group’s former chairman Ratan Tata.
In December, Cyrus Investments Pvt Ltd and Sterling Investments Corporation Pvt Ltd moved the National Company Law Appeals Court, alleging minority shareholder oppression and mismanagement by Tata Sons. They also challenged the removal of Mr Mistry.
In December 2019, a corporate law court reinstated Mr. Mistry as the group’s executive chairman. But before that, in February 2017, he was removed from his position as a director on the board of Tata Sons.
