InvestorQ : With the Supreme Court judgement on the Tata / Mistry case today, do you expect the dispute to finally reach a conclusion?
Dawn Cherian made post

With the Supreme Court judgement on the Tata / Mistry case today, do you expect the dispute to finally reach a conclusion?

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Mitali Bhutta answered.
3 months ago
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It looks like there could be a degree if finality in the Tata / Mistry case that has been dragging on since the last five years. However, there are too many complications in the case to be resolved in just one sitting or one judgment. Although, the Supreme Court will pronounce its judgement on Tata Sons / Cyrus Mistry case on 26 March, it is unlikely that all the open issues would get addressed in a single judgment itself.

There have been judgment iterations since 2018. First, the NCLT held that the Tatas were perfectly justified in removing Cyrus Mistry from the helm of Tata Sons. Subsequently, Mistry family appealed to the NCLAT, which ordered the restoration of Cyrus Mistry at the helm of Tata Sons and declared the appointment of Chandrasekharan as illegal. This was disputed by the Tatas in the Supreme Court.

At that point of time, Supreme Court had ordered a stay on the subject till a final order was passed. Whether the Supreme Court passes a final order on 26 March or seeks more time will remain to be seen but at stake are billions of dollars of wealth and shareholder trust. Hence the courts may also ask for more time to arrive at a considered judgment. The bench is likely to be headed by Chief Justice, S A Bobde, who is also due to retire shortly.

It may be recollected that the Pallonji group counsel had argued that the removal of Cyrus Mistry was a violation of corporate governance principles and also against the Tata Sons Articles of Association. Pallonji family is asking for representation in proportion to their 18.37% stake in Tata Sons. Tatas had subsequently even rejected a proposal to swap the Mistry family stake with shares of Tata Group. That could be the second part of the story.

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