The Supreme Court on Friday upheld the removal of Cyrus Mistry as executive chairman of Tata Sons and director on the board of the company.
The Court ruled in favour of Tatas in one of the most high-profile and publicly fought corporate battles.
A bench of Chief Justice S A Bobde and Justices A S Bopanna and V Ramasubramanian set aside the NCLAT order restoring Mistry as the chairman of Tata Sons.
The top court also refused to consider a plea by Shapoorji Pallonji group for fair compensation of their equity shares in Tata Sons.
It said value of SP group shares will depend on valuation of Tata Sons’ equities and that the court would not get into determining what should be a fair value.
Mistry was handpicked by chairman emeritus Ratan Tata in 2012 and sacked in 2016 as chairman of the salt-to-software conglomerate.
On January 10, 2020, the court stayed in toto the NCLAT order of December 18, 2019 which reinstated Mistry, noting several "lacunae".
NCLAT had held the group's chairman emeritus Ratan Tata's actions against Mistry were oppressive and the appointment of a new chairman was illegal.
The top court had reserved the verdict on December 17, last year in cross appeals filed by Tata Sons, Ratan Tata and Cyrus Investment and others.
(Published 26 March 2021, 06:11 IST)
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