New Delhi: The Supreme Court on Friday allowed an appeal by Tata Sons Ltd against the order of National Company Law Appellate Tribunal of reinstating ousted Cyrus Mistry to the chairman post.
A three-judge bench, headed by Chief Justice of India SA Bobde stated that the decision by the board of Tata Sons does not indicate mismanagement or oppression of minority stakeholders.
The bench, also comprising of Justices AS Bopanna and V Ramasubramanium, said it was open to Tata Sons and Mistry to work out the separation terms, as per a report from Live Law.
The NCLAT had ordered reinstating Mistry to the chairman post after he was removed by the Tata Sons board.
After the Mistry's removal, an appeal was made by Shapooriji Palloniji Group to National Company Law Tribunal (NCLT) Mumbai, alleging oppression and mismanagement in the board. However, the appeal was rejected by the NCLT Mumbai.
Later, the group went to National Company Law Appellate Tribunal (NCLAT), which accepted their plea, stayed the appointment of N Chandrashekhar as the new chairman and ordered reinstation of Mistry.
The Supreme Court, however, stayed the NCLAT judgement and reserved its judgement on December 17, 2020.(UNI)