The court pronounced its judgment on the cross appeals filed by Tata Sons and Cyrus Investments against the National Company Law Appellate Tribunal (NCLAT) order which had restored Mistry as the executive chairman of the over $100 billion group.
The court also refused to entertain Shapoorji Pallonji (SP) group’s plea for fair compensation of their equity shares in Tata Sons.
It said that the value of SP group shares will depend on valuation of Tata Sons’ equities and that the SC would not get into determining what should be a fair value.
A bench headed by Chief Justice S A Bobde pronounced the verdict. The bench, also comprising justices A S Bopanna and V Ramasubramanian, had on December 17 last year reserved the verdict in the matter.
SP Group had told the top court on December 17 that removal of Mistry as the chairman of Tata Sons in a board meeting held in October 2016 was akin to a “blood sport” and “ambush” and was in complete violation of principles of corporate governance and pervasive violation of Articles of Association in the process.
Tata Group, on other hand, had opposed the allegations and said there was no wrongdoing and the board was well within its right to remove Mistry as the chairman.
The apex court had on January 10 last year granted relief to Tata Group by staying the NCLAT order of December 18, 2019 by which Mistry was restored as the executive chairman.
Mistry had succeeded Ratan Tata as chairman of Tata Sons in 2012 but was ousted four years later in 2016.
(With inputs from PTI)