The Supreme Court on Friday set aside the reinstatement of Cyrus Mistry as the Chairperson of Tata Sons Limited. Court answered all questions in favour of Tata Group.
A bench of CJI SA Bobde, Justices AS Bopanna & V. Ramasubramaniun pronounced the judgment today at 11.20 am and read out as follows:
"We formulated the following questions of law:
- Whether the formation of opinion by the appellate tribunal that the company's affairs are being conducted in a manner that are prejudicial and oppressive to some members and that the facts otherwise establish that the affairs are in tune with the well settled principles, especially in light of the fact that the NCLT order was not individually and specifically overturned by the appellate tribunal.
- Whether the reliefs granted and the directions by the appellate tribunal including the institution of CPM are in consonance with the pleadings made, the reliefs sought and the powers available under section 2 of 242.
- Whether the appellate tribunal could have in law muted the company under the Articles of Association.
- Whether characterisation of the affirmative voting rights by tribunal available to the directors as prejudicial and oppressive are justified.
- Whether the reconversion of Tata Sons from a public company to a private company required the necessary approval under Company's Act.
All questions of law are liable to be answered in favour of Tata Group and are liable to be allowed and those by SP are liable to be dismissed."
The Supreme Court had reserved its judgment in the matter on December 17, 2020.
Tata Sons and Cyrus Mistry had challenged a December 18, 2019 order of the National Company Law Appellate Tribunal which was stayed by the top court on January 10, 2020.
The Appellate tribunal had held that removing Cyrus Mistry as Chairperson was illegal. It had also directed that Ratan Tata should not take any decision in advance requiring majority decision of the Board of Directors of Tata Sons or a majority in the Annual General Meeting.