In Tata vs Cyrus Mistry, Supreme Court To Hear Review Petition Tomorrow

The Tata Group versus Cyrus Mistry dispute will be under the Supreme Court's lens again tomorrow. The judges have agreed to consider an appeal for review of the court's last year's decision backing the Tatas over the removal of the former chairman and division of shares.The decision came in response to a petition by Cyrus Investments Group, which sought reconsideration of the order in April last year.

A bench of Chief Justice of India NV Ramana, Justice AS Bopanna and Justice V Ramasubramaniam will consider the matter in chamber tomorrow.

In March last year, a bench headed by then Chief Justice of India SA Bobde had upheld the removal of Cyrus Mistry from the post of Executive Chairman of the Tata Group, setting aside an order by a company law tribunal that reinstated him.

Dismissing pleas of Cyrus Investments and Sterling Investments -- two companies backed by the Mistry family -- that Mr Mistry's removal was an instance of oppression on minorities, the court said all questions of law were in favour of the Tatas.

"That failed business decisions and the removal of a person from Directorship can never be projected as acts oppressive or prejudicial to the interests of the minorities, is too well-settled," the judges had said. The court had also said both parties can take the legal route regarding the dispute of shares.

Cyrus Mistry was removed as Tata Sons chairman in October 2016 after differences with the group's former chairman Ratan Tata.  

In December, Cyrus Investments Pvt Ltd and Sterling Investments Corporation Pvt Ltd had moved the National Company Law Appellate Tribunal, alleging oppression of minority shareholders and mismanagement by Tata Sons. They also challenged Mr Mistry's removal.

In December 2019, the company law tribunal restored Mr Mistry as the executive chairman of the conglomerate. But before that, in February 2017, he was removed as a director on the board of Tata Sons.