The Shapoorji Pallonji Group has filed a review petition before the Supreme Court challenging the Supreme court’s verdict on March 26 in the dispute between Tata Sons Limited and Cyrus Mistry in which the Court had ruled in favour of Tata.
By: Sargam Vohra, BA LLB, IIMT
The SP Group knocked on the doors of the Supreme Court on Sunday by filing a review petition before it and challenged the Supreme Court’s judgment passed on March 26 which favoured the Tata Group. The said review petition will be heard inside the chamber by the same bench, which had passed the judgment in the case which includes Chief Justice of India, SA Bobde, and Justices AS Bopanna and V Ramasubramanian.
On March 26, the apex court had set aside a National Company Law Appellate Tribunal (NCLAT) order that reinstated the position of Cyrus Mistry as Executive Chairman of Tata Sons and this ruling favoured the Tata Group. The SP Group had a 30-day deadline to file a review petition, before the Supreme court.
Cyrus Mistry of Shapoorji Pallonji Group, was a minority shareholder yet the most significant one in Tatas Sons, but was initially removed from the post of executive chairman following a boardroom mutiny.
However, Mistry’s subsequent actions, including the leaking of confidential mail to the media to create a “sensation” and passing on information to the Income-Tax authorities while claiming to be a “law-abiding citizen”, were taken as a declaration of war against the Tatas. This action led to his removal as a director, as stated by the apex court in its March 26 order.
The Shapoorji Pallonji Group had moved the National Company Law Tribunal over Mistry’s removal alleging oppression of minority shareholders and mismanagement. The Supreme Court had passed the verdict in the favour of the Tata Group.
The Supreme Court in its verdict upheld the decision of the Tata Group board to remove Cyrus Mistry from acting as its Chairman in October 2016 and ordered to set aside the order of National Company Law Appellate Tribunal’s earlier order restoring Cyrus Mistry’s position as Executive Chairman of the Tata Group.
In the 26th march verdict, the Court had stated that “We leave it to Tata sons, Cyrus Mistry to take any legal route to resolve issues of shares.”
The Supreme Court also dismissed the pleas filed by Cyrus Investments and Sterling Investments.