An overview
The former Chairman of Tata Sons Ltd, Cyrus Mistry’s petition for reviewing the Supreme Court’s order last year, which had backed his ousting by the $100 billion conglomerate of salt-to-software, will be heard in an open court on March 9.
Mistry as Chairman had been replaced in October 2016 by Tata Sons in less than four years after he took charge.
Investments of Cyrus had requested to reconsider its March 2021 order by the Supreme Court, which favored the Tata group.
The Supreme Court order validated the values and ethics that had always guided the Tata group said by Tata Sons Chairman Emeritus Ratan Tata.
The due process
On 15th February Tuesday, the Hon’ble Supreme Court had decided to hear the review of the petition put before by Shapoorji Pallonji Group challenging the order dated 26.03.2021, which had allowed the appeal by Tata Son’s against the NCLAT order, after that which restricted the former Chairman Cyrus Mistry.
The Bench comprised Chief Justice of India, NV Ramana, and Justices AS Bopanna and V. Ramasubramanian, before which the Review Petitions were placed.
While most of the preceding officers agreed to hear the review on 09.03.2021 for the open court hearing, Justice Ramasubramanian was in disagreement and said with due respect that he regarded his inability to agree with the order.
He had carefully gone through the Review Petitions, and he didn’t find any valid ground to review the judgment.
The foundations put forth in the Review Petitions don’t fall within the domain of a review, and hence the applications which sought oral hearing ought to be dismissed.
In its order passed on December 18, 2019, to The NCLAT by the court, which had quashed the decision taken in October 2016 to remove Mistry as the Chairman by the Board of Tata Sons and had directed to reconsider Mistry.
The legal battle
The present legal battle started when the company petitions were filed u/s 241 and 242 of the Companies Act 2013, alleging oppression and mismanagement in Tata Sons by Shapoorji Pallonji Group.
These pleas were tabled in order of Mistry’s removal. The NCLT Mumbai bench dismissed appeals that were put before NCLAT.
On December 18, 2019, Cyrus Mistry was restored by The National Company Law Appellate Tribunal restored as the Executive Chairman of Tata Group.
The Supreme Court sets aside the order by NCLAT and the Bench comprising the then CJI SA Bobde, Justice AS Bopanna, and V Ramasubramanian.
The Apex Court declared that the valuation of shares of SP group depends upon the value of stake Tata Sons holds in listed and unlisted equities, immovable assets, etc.
Also, it perhaps depends upon the funds raised by SP Group on the security pledge of the shares.
Hence, the apex court refused to adjudicate the said matter before him and stated that the parties could remedy Article 75 of the Articles of Association or any other legally available routes.
Edited By- Subbuthai Padma
Published By- Satheesh Kumar
