InvestorQ : How important was the Supreme Court judgment on Friday on the Tata versus Mistry case?
diksha shah made post

How important was the Supreme Court judgment on Friday on the Tata versus Mistry case?

Answer
image
3 months ago
Follow

On Friday, the long awaited judgment by the Supreme Court ruled in favour of the Tatas, but the real question is whether it was anything more than a moral victory. The judgment might have been delivered on a subject that is hardly the subject of debate any longer. In a sense, the real case is not about restoration of Cyrus Mistry’s position as chairman of Tata Sons any longer. That is something even Cyrus Mistry has confirmed.

The focus now is on an exit for the Mistry family from Tata Sons and the valuation and the methodology to be adopted. In short, the bench led by Justice Bobde, validated all the submissions of the Tata Group and rejected all the submissions of the Mistry group. That makes the removal of Cyrus Mistry legitimate and it also legitimizes the appointment of N Chandrasekharan as the chairman of Tata Sons.

Tatas have claimed a moral victory and that could be the best it is. While Cyrus still wants a say in board decision considering his 18.4% stake in Tata Sons, the chairman’s post is not the subject any longer. The bigger issue is about the monetization of Tata Sons stake by Mistry family. However, the court pronounced its verdict on an issue that is really not the subject of dispute any longer between the Tatas and the Mistry family.

1 Views