Supreme Court To Hear Tata Petitions Against Mistry’s Reinstatement On Jan. 10

The Supreme Court will hear on Jan. 10 the petitions by Tata Sons, Ratan Tata and other Tata group companies challenging the National Company Law Appellate Tribunal’s order that reinstated Cyrus Mistry as executive chairman of India’s biggest conglomerate.

An apex court bench headed by Chief Justice of India SA Bobde, Justice BR Gavai and Justice Surya Kant will hear the petitions. While senior advocates Abhishek Manu Singhvi, Mohan Parasaran and Mukul Rohatgi would lead the charge for the Tatas, Aryama Sundaram is likely to defend the appellate tribunal’s order.

Highlights of the NCLAT’s judgment:

• Removal of Cyrus Mistry from Tata Sons was illegal.
• Mistry’s removal from other Tata group firms was also illegal.
• Ratan Tata’s actions against Mistry were oppressive.
• Ordered restoration of Mistry’s positions in Tata Sons.
• Tata Sons’ change to private company from public was illegal.
• Tata Sons to be reinstated as a public company.
• Abuse of power by directors nominated by Tata Trusts led to losses at Tata Sons’ group companies.

The appeals filed in the Supreme Court include a petition by Tata Sons which is challenging the appellate tribunal’s judgment in its entirety.

Tata Sons said the NCLAT judgment has gone against the principles of company law and undermined the right of the Board. The NCLAT had no jurisdiction to reinstate Mistry and this wasn’t even sought by him, it said in its petition. The removal was done only because there was “an untenable trust deficit” between Tata Trusts and Mistry, the petition said, adding that the judgment is untenable in law, has undermined corporate democracy and rights of the board of directors.

Tata Teleservices Ltd. has challenged Mistry’s reinstatement to its board. The company contended that the NCLAT passed the direction without giving them a chance to present their side and brought back Mistry even when he didn’t seek it at any forum. The Tata group company said in its petition Mistry never availed the opportunity to present his side before he was removed from the company’s board.

Tycoon Ratan Tata, who has filed a separate case against the NCLAT, questioned the comments made by the tribunal against him. The NCLAT had found Ratan Tata’s action against Mistry as evidence of mismanagement and oppression of minority shareholders.

The companies are likely to seek a stay on the NCLAT judgment till the top court passes a final order.

Mistry had said in a statement after the NCLAT judgment that he won’t be pursuing the post of chairman at Tata Sons or directorship at any of the companies.