The Supreme Court on Friday observed that the ouster of former Tata Sons Limited Executive Chairman Cyrus Mistry was legal and set aside a December 2019 National Company Law Appellate Tribunal (NCLAT) order that directed his reinstatement.
There was no oppression of the minority shareholder (Mistry), the three-judge bench led by Chief Justice of India SA Bobde said. There was no mismanagement by the Tata Sons, it added.
The apex court however added that it was open for Tata and Mistry to work out their terms of separation as per the law available to them.
The top court answered all the legal questions arising out of this dispute in favour of Tata Sons bringing an end to one of the biggest corporate battles in recent times.
The top court's verdict came on a plea filed that challenged the December 18, 2019, National Company Law Appellate Tribunal (NCLAT) order which reinstated Shapoorji Pallonji Group scion Cyrus Mistry as the Executive Chairman of the Tata Sons.
The Tata-Mistry dispute began when Cyrus Mistry—who succeeded Ratan Tata in 2012—was ousted four years later. The NCLAT in December 2019 had termed the decisions to remove Mistry and the appointment of N Chandrashekar—his successor as illegal.