After the Supreme Court on Friday came up with a favourable judgement for Tata Sons in its case against Cyrus Mistry, the conglomerate has said that the verdict upholds the group’s governance standards and it will continue to work towards developing the nation along with protecting the interests of its shareholders.
The apex court on Friday accepted all the contentions of Tata Sons and set aside the order of the NCLAT, which had restored Cyrus Mistry as the executive chairman of the conglomerate.
A bench headed by Chief Justice S.A. Bobde said that all questions of law are in favour of Tata Group as it dismissed the appeals filed by Mistry. The top court upheld the Tata Sons decision to sack Cyrus Mistry on October 24, 2016.
“The judgment of the Supreme Court vindicates the position of Tata Sons and upholds the governance standards adopted by the Tata Group over the years. Tata Sons is grateful to the Supreme Court,” said the statement.
It further said: “Tata Group remains deeply committed to continue its efforts towards development of the nation and building the business keeping the long-term interest of shareholders and the community at large.”
The counsel for Shapoorji Pallonji Group had argued that Mistry was removed because he was going to place a draft governance structure at the Board meeting on October 24, 2016.
“We find all the questions of law are liable to be answered in favour of the appellants (Tata Group) and the appeals filed by the Tata Group are liable to be allowed and Shapoorji Pallonji group is liable to be dismissed,” said the top court.
The top court said the value of SP Group shares will depend on the valuation by Tata Sons equities and the court will not determine the fair value.
In December 2019, the NCLAT had ruled that the proceedings of the Board meeting of Tata Sons held on October 24, 2016 removing Cyrus Mistry as chairperson was illegal.