SC upholds Cyrus Mistry's ouster from Tata Sons

In a big relief for Tata Sons, the Supreme Court on Friday backed the removal of Cyrus Mistry as the chairman of the over $100 billion salt-to-software Tata Group in 2016 and set aside the company law tribunal order that had reinstated him. A bench headed by Chief Justice SA Bobde said the decision to remove Cyrus Mistry was right. "All questions of law are in favour of Tata Group," said the judges. The Supreme Court had on December 17 reserved a verdict.

Ratan Tata, in a statement, said the order validated the values and ethics that had always guided the Tata Group. "It is not an issue of winning or losing. After relentless attacks on my integrity and the ethical conduct of the group, the judgment upholding Tata Sons is a validation or the values and ethics that have always been the guiding principles of the group. It reinforces the fairness and justice displayed by our judiciary," Ratan Tata posted.

The National Company Law Appellate Tribunal (NCLAT) had on December 18, 2019, restored  Mistry as the executive chairman of the conglomerate. That order, challenged by the Tatas, has been scrapped. Ratan Tata, in a statement, said the order validated the values and ethics that had always guided the Tata Group. Shapoorji Pallonji Group had told the Supreme Court then that the removal of Cyrus Mistry as the chairman of Tata Sons in a board meeting held in October 2016 was like a "blood sport" and "ambush" and in complete violation of principles of corporate governance and pervasive violation of Articles of Association in the process.Tata Group had vehemently opposed the allegations and said the board was well within its rights to remove Mistry as the chairman.