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 legal battle between Cyrus Mistry and Ratan Tata has been one of the most high-profile corporate feuds in India. Tata Trusts, which owns a 66 percent stake in Tata Sons, is chaired by Ratan Tata. The Mistry family owns an 18.4 percent stake in the company.

While delivering the judgment, the three-judge bench comprising Chief Justice SA Bobde, Justice AS Bopanna and Justice V Ramasubramanian will determine if there was oppression and mismanagement at Tata Sons, as alleged by Mistry. The bench will also decide on the legality of Mistry’s sacking and loss of his directorship on the board. Last year, on December 17, the Supreme Court had reserved its judgment on the matter.

Here’s a timeline of the events in the legal battle:

December 2012: Cyrus Mistry is appointed Chairperson of Tata Sons Limited.

October 2016: He is sacked from the post by most of the Board of Directors.

Jan 12, 2017: Tata Sons names N Chandrashekaran as Chairman, the then TCS Chief Executive Officer and Managing Director. Feb 6: Mistry removed as a director on the board of Tata Sons, holding company of Tata group firms.

February 2017: The shareholders vote for Mistry’s removal from the board of Tata Sons during an extraordinary general meeting. Mistry, subsequently, files a suit under various sections of the Companies Act, 2013, alleging oppression and mismanagement in Tata Sons.

July 2018: The Mumbai Bench of the National Company Law Tribunal (NCLT) dismisses Mistry’s plea against Tata Sons. While rejecting his allegations, NCLT rules that the Board of Directors are competent enough to remove him as Chairman. The tribunal also states that it found no merit in the arguments on mismanagement in Tata Sons.

December 2019: The National Company Law Appellate Tribunal (NCLAT) overturns the NCLT judgment, and states that Mistry’s removal as Chairman of Tata Sons was illegal.

January 2020: Tata Sons and Ratan Tata challenge the NCLAT decision before the Supreme Court. Subsequently, the Supreme Court stays the NCLAT judgment to reinstate Mistry as the executive chairman of Tata Sons.

February 2020: Mistry files cross-appeal in the Supreme Court against NCLAT judgment, says his family—Shapoorji Pallonji—deserved more relief from the tribunal.

September 2020: The Supreme Court restrains Mistry’s Shapoorji Pallonji Group from pledging its shares in Tata Sons to raise funds.

December 2020: Final hearing commences before the three-judge Supreme Court bench headed by Chief Justice SA Bobde.

(Edited by : Ajay Vaishnav)

First Published:Mar 26, 2021 10:23 AM IST