Soon after the Supreme Court on Friday ruled its final verdict in the Tata Sons versus Cyrus Mistry case, Tata Group's Chairman Emeritus Ratan Tata expressed his gratitude to the top court saying that, "the order reinforces the fairness and justice displayed by our judiciary." Releasing a statement via social media, the industrialist said he is "grateful" for the judgment passed by the apex court.
"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 all the appeals of Tata Sons is a validation of the values and ethics that have always been the guiding principles of the group," Ratan Tata wrote.
In a massive victory for Tata Sons, the top court today dismissed the appeals by Cyrus Mistry and backed his removal as the Chairman of the $100 billion salt-to-software conglomerates in 2016.
The court pronounced its judgment on the cross-appeals filed by Tata Sons and Cyrus Investments against the 2019 order by the National Law Tribunal to reinstate Mistry as the executive chairman of the company. A bench headed by Chief Justice SA Bobde said the decision to remove Cyrus Mistry was right and all legal questions in the favour of Tata Sons.
"We find all the questions of law are liable to be answered in favour of the appellants, Tata Group and the appeals file by the Tata Group are liable to be allowed and Shapoorji Pallonji group is liable to be dismissed," said the judges.
The court also dismissed the Shapoorji Pallonji (SP) group’s plea for fair compensation of their equity shares in Tata Sons. It said that the value of the shares will depend on the valuation of Tata Sons’ equities and the apex court would not get into determining a fair value. The bench added that both parties were at liberty to raise the issue at the appropriate forum.
Shapoorji Pallonji (SP) Group had told the SC on December 17 that removal of Cyrus Mistry as the chairman of Tata Sons in a board meeting held in October 2016 was akin to a “blood sport” and “ambush." Tata Group, on other hand, had vehemently opposed the allegations and said the board was well within its right to remove Mistry as the chairman.
Mistry had succeeded Ratan Tata as chairman of Tata Sons in 2012 but was dramatically ousted four years later.