SC rules in favor of Tata Group amidst the Tata-Mistry Battle
Tata Group stocks jumped at the market after the Supreme Court on Friday gave its verdict. It is regarding the December 2019 order of the National Company Law Appellate Tribunal which had to establish Cyrus Mistry as the Chairperson of Tata Sons Limited. The court ruled in favor of Tata Sons bringing closure to the half-decade old legal battle due to the removal of Mistry as Tata Sons Chairman.
The bench, led by the Chief Justice of India, SA Bobde, refused to entertain Mistry group’s plea for fair compensation for their 18.5 percent stake in Tata Sons saying the value of Mistry’s stake will depend on the valuation of Tata Son’s assets and that it would not get into determining what should be a fair value. Lawyers said, “Both parties can now begin talks on how Mistry can sell its stake to the Tata group or investors nominated by it and at what valuation.”
Amidst this case, well-settled principles were overturned by NCLAT, the Supreme Court observed while delivering the verdict today. The court ruling comes after years of protracted legal procedures, bitter accusations and counter-accusations, and no-holds-barred mudslinging and removes an overhang on the conglomerate’s stocks that have performed brilliantly in the past year.
Ratan Tata also went on to talk about the news on Twitter. Ratan Tata showing his gratitude said that the judgment comes “after relentless attacks on my integrity and ethical conduct of the Tata group”.