JOIN USTata Group stocks gain after SC verdict
Tata Group stocks gained up to 6 per cent on Friday after the Supreme Court set aside the NCLAT order restoring Cyrus Mistry as executive chairman of the conglomerate.
Tata Steel was quoting 5.89 per cent higher, Tata Communications 5.23 per cent, Tata Motors 4.80 per cent and Tata Power Company 4.82 per cent on BSE.
Among others, Tata Consumer Products jumped 2.89 per cent, Tata Investment Corporation 2.70 per cent, Tata Chemicals 2.13 per cent, Tata Metaliks 1.37 per cent, Tata Steel Long Products 1.72 per cent and TCS 0.99 per cent.
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 Justices AS Bopanna and V Ramasubramanian said it is allowing the appeals filed by Tata Group.
"The order of National Company Law Appellate Tribunal (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 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.