Industrialist Ratan Tata has welcomed the Supreme Court’s verdict to set aside the National Company Law Appellate Tribunal (NCLAT) verdict in the nearly five-year-old case between Tata Group and Cyrus Mistry. In a tweet shared on Friday afternoon, Ratan Tata said the top court’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 said.
“It reinforces the fairness and justice displayed by our judiciarty,” he added.
In a major victory for the Tata Group, the Supreme Court on Friday set aside the NCLAT order restoring Cyrus Mistry as the executive chairman of the conglomerate. A bench of Chief Justice SA Bobde and Justice AS Bopanna and Justice V Ramasubramanian said it is allowing the appeals filed by Tata Group.
“The order of NCLAT dated December 18, 2019 is set aside,” the bench said. The court said, “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 last year, Shapoorji Pallonji (SP) Group had told the top court that removal of Mistry as the chairman of Tata Sons in a board meeting held in October 2016 was akin to a ‘blood sport’ and ‘ambush’ and was in complete violation of principles of corporate governance and pervasive violation of Articles of Association in the process. The Tata Group had vehemently opposed the allegations and said there was no wrongdoing and the board was well within its right to remove Mistry as the chairman.
The top court had on January 10 last year granted relief to the Tata group by staying the NCLAT order by which Mistry was restored as the executive chairman of the conglomerate. Mistry had succeeded Ratan Tata as chairman of the Tata Sons in 2012 but was ousted four years later. In his reply to the Tatas’ petition challenging his reinstatement by the NCLAT, Mistry had also demanded that group chairman emeritus Ratan Tata should reimburse all the expenses to Tata Sons since his departure in December 2012 in keeping with best global governance standards.
Tata Trusts, which owns 66 per cent stake in Tata Sons, is chaired by Ratan Tata, the patriarch of the Tata group, while the Mistry family owns 18.4 per cent stake in the company.