Ratan Tata vs Cyrus Mistry - The Feud that Shattered the Indian Corporate Sphere

Описание: The Supreme Court on 26th March 2020, set aside the December 2019 order of National Company Law Appellate Tribunal (NCLAT) which had reinstated Cyrus Mistry as the Chairperson of Tata Sons Limited [Tata Consultancy Services Limited v. Cyrus Investment]. The judgement by the Hon’ble Supreme Court was regarding issues of corporate governance, role of the court in it and issues of oppression and mismanagement. The epic corporate war started in 2016, when Cyrus Mistry was dismissed as Chairman of Tata Sons, the Group’s main holding company. Mistry also lost his seat on the board despite his family’s 18.47 per cent shareholding in the company. This prompted him to file a case of oppression and mismanagement against the Tata group. While NCLT ruled against Mistry, NCLAT judgment was in favour of him. This led to the Tatas moving the Supreme Court. Mistry’s assertion of oppression and mismanagement at Tata Sons did not succeed at the apex court. The National Company Law Appellate Tribunal had found in his favour and reinstated him as chairman of Tata Sons. The Supreme Court has overturned the appellate tribunal decision. This decision by the Supreme Court has also restricted the role of the courts in the interference in the corporate decision making process and has upheld the supremacy of the Board.