SC dismisses plea to review verdict on removal of Cyrus Mistry as Tata Sons head

The Supreme Court dismissed Thursday a petition filed by Shapoorji Pallonji Group against its March 26, 2021, ruling that approved the decision of Tata Sons to remove Cyrus Pallonji Mistry as the executive chairman and director of the group and overturned the National Company Law Appellate Tribunal (NCLAT) order reinstating him.

Mistry who had succeeded Ratan Tata as the chairman of Tata Sons in 2012 was ousted by the board four years later.

A bench presided by Chief Justice of India N V Ramana declined to entertain the plea. The court, however, agreed to expunge certain remarks against Mistry from last year’s judgement even as it took exception to a remark in Mistry’s application that said “the judgment is worse than a press statement”.

“We have objection. The court has objection. You have said something against the court, not the other side,” said Justice Bopanna.

The CJI told the counsel appearing for Mistry that he should first withdraw the same before the court can consider the request to expunge remarks. Agreeing to withdraw the remark, the counsel said there was no intention to hurt the court. Justice Ramasubramanian quipped: “Scores are settled, we have said something you have said something against us.” The bench said the judges will confer and decide what has to be deleted.

Setting aside the December 18, 2019 order of the NCLAT, a bench headed by the then Chief Justice of India S A Bobde said on March 26, 2021: “All the questions of law are liable to be answered in favour of the appellants-Tata group and the appeals filed by the Tata Group are liable to be allowed and the appeal filed by S.P. (Shapoorji Pallonji) Group is liable to be dismissed”.

Overruling the tribunal decision to reinstate Mistry, who was removed initially as executive chairman by the TATA Sons board through a resolution dated October 24, 2016, and subsequently as director, the court had said: “His removal from directorship happened…for valid and justifiable reasons and hence NCLAT could not have laboured so much on the removal of CPM…”

“In any event the removal of a person from the post of executive chairman cannot be termed as oppressive or prejudicial in law,” the bench had pointed out. The court was also critical of Mistry’s conduct.

Welcoming the development, Ratan Tata, the Chairman Emeritus of Tata Group, tweeted: “We would like to express our grateful appreciation of the judgement passed and upheld by the Supreme Court today. It reinforces the value system and the ethics of our judiciary.”