The Supreme Court on Tuesday deferred hearing in Tata-Mistry case for Wednesday, December 9. Tata Sons and Cyrus Mistry Group have challenged a December 18, 2019, order of National Company Law Appellate Tribunal (NCLAT) that had ordered the reinstatement of Cyrus Mistry as the Chairperson of Tata Sons Limited. The two conglomerates have been embroiled in a legal battle since 2016 when Cyrus Mistry, scion of the family that controls the SP Group, was sacked as chairman of Tata Sons.
Tata Sons has offered to buy back the stakes currently with the Shapoorji Pallonji Group (SPG). SPG is selling its 18.37 per cent stakes in Tata Sons which are valued at Rs 1.75 lakh crore.
Earlier, the top court had restricted Shapoorji Pallonji Group from selling the shares of Tata Sons held by the group. But, Tata Sons had approved the selling of the shares within three months, according to the articles of association of the group.
In the previous hearing, Tata Sons had concerns that this may lead them to lose investors if SPG defaults. The petition filed by Tata Sons wanted to stop this sale. However, SPG has accused the latter of creating unnecessary hurdles.
Tata Sons counsel Harish Salve told the Supreme Court, “NCLAT can’t take it upon itself to overrule shareholders, make appointments by itself. Being private company, Trustees of Tata Trusts with a 68 per cent shareholding in Tata Sons would be within their rights to pack the board with their nominees.”
“It is absurd relief by NCLAT to put person with 18 per cent stake at helm of affairs,” Salve added.