Industrialist Ratan Tata has welcomed the Supreme Court’s verdict to put aside the National Company Law Appellate Tribunal (NCLAT) verdict within the almost five-year-old case between Tata Group and Cyrus Mistry. In a tweet shared on Friday afternoon, Ratan Tata stated the highest courtroom’s verdict is a validation of the values and ethics of Tata Group.
“I appreciate and am grateful for the judgement passed by the honourable Supreme Court today. It is not an issue of winning or losing. After relentless attacks on my integrity and the ethical conduct of the group, the judgement upholding all the appeals of Tata Sons is a validation of the values and ethics that have always been the guiding principles of the group,” he stated.
“It reinforces the fairness and justice displayed by our judiciarty,” he added.
In a serious victory for the Tata Group, the Supreme Court on Friday put aside the NCLAT order restoring Cyrus Mistry as the manager chairman of the conglomerate. A bench of Chief Justice SA Bobde and Justices AS Bopanna and V Ramasubramanian stated it’s permitting the appeals filed by Tata Group.
“The order of NCLAT dated December 18, 2019 is set aside,” the bench stated. The courtroom stated, “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 those by Shapoorji Pallonji Group are liable to be dismissed.”
On December 17 final 12 months, Shapoorji Pallonji (SP) Group had advised the highest courtroom that removal of Mistry because the chairman of Tata Sons in a board assembly held in October 2016 was akin to a ‘blood sport’ and ‘ambush’ and was in full violation of rules of company governance and pervasive violation of Articles of Association within the course of. The Tata Group had vehemently opposed the allegations and stated there was no wrongdoing and the board was nicely inside its proper to take away Mistry because the chairman.
The high courtroom had on January 10 final 12 months granted reduction to the Tata group by staying the NCLAT order by which Mistry was restored as the manager chairman of the conglomerate. Mistry had succeeded Ratan Tata as chairman of the Tata Sons in 2012 however was ousted 4 years later. In his reply to the Tatas’ petition difficult his reinstatement by the NCLAT, Mistry had additionally demanded that group chairman emeritus Ratan Tata ought to reimburse all of the bills to Tata Sons since his departure in December 2012 in line with finest international governance requirements.
Tata Trusts, which owns 66 per cent stake in Tata Sons, is chaired by Ratan Tata, the patriarch of the Tata group, whereas the Mistry household owns 18.4 per cent stake within the firm.