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India’s Supreme Court on Friday stayed an earlier appellate tribunal order that reinstated Cyrus Mistry, who was ousted following a boardroom coup in 2016, as Executive Chairman of Tata Sons and director of various Tata Group companies.
The Supreme Court bench also agreed to hear Tata Sons’ petition challenging the National Company Law Appellate Tribunal (NCLAT) order. The matter has been posted for hearing after four weeks.
“This stay is regarding reinstating Mistry as executive chairman of Tata group,” a lawyer who was part of the proceedings said.
The Supreme Court bench – comprising Chief Justice of India SA Bobde and Justices BR Gavai and Surya Kant – will hear petitions filed by Tata Sons, its chairman emeritus Ratan N Tata, Tata Consultancy Services (TCS) and Tata Tata Teleservices (TTSL).
Also read: Tata Trusts, TCS, Tata Tele move SC seeking to set aside NCLAT ruling
The apex court also ruled that Tatas will not exercise power under Article 75 of Company Law and “push out” shares of minority holders in the company.
Further, Mistry’s lawyers also informed the court that he was not interested in pursuing chaírmanship of Tata Sons and directorship at various group firms. Senior advocate C A Sundaram appeared for Cyrus Mistry group on Friday.
Also Read: Cyrus Mistry not to return as Tata Sons chief, says ‘fight was never about me’
In its December 18, 2019, ruling NCLAT had ordered Tata Group to reinstate Mistry as executive chairman. The appellate tribunal had also declared the appointment of former Tata Consultancy Services head N Chandrasekaran as Tata Group’s Executive Chairman and the conversion of Tata Sons from a public company to private company as “illegal”.
In its order, NCLAT stayed Mistry’s reinstatement for four weeks, allowing Tatas time to file an appeal.
Mistry, who was the sixth chairman of the Tata Group from 2012-2016, was ousted following a boardroom battle on October 24, 2016. Later, Mistry — through two family-run firms — Cyrus Investments and Sterling Investments Corp — moved the National Company Law Tribunal in Mumbai against Tata Sons.
Mistry, whose family owns 18.4 per cent stake in Tata Sons, challenged his removal in the National Company Law Tribunal (NCLT). The case of oppression and mismanagement against Tata Sons and 20 others, including Ratan Tata, filed by Mistry family entities - Cyrus Investments and Sterling Investments - were however in March 2017 dismissed by the NCLT ruling that they were not eligible to pursue the allegations.
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