Supreme Court sets aside NCLAT order reinstating Cyrus Mistry as Tata Sons chairman

In a major development, the Supreme Court on Friday (March 26, 2021) set aside the December 2019 ruling of the National Company Law Appellate Tribunal (NCLAT) that had directed the reinstatement of Cyrus Mistry as Tata Sons chairperson.

The top court also set aside the appointment of N Chandra as executive chairperson.

The order was passed by the apex court bench of Chief Justice of India, SA Bobde and Justices AS Bopanna and V Ramasubramanian. The bench allowed the appeal filed by Tata Sons against the NCLAT judgement and dismissed the appeals filed by Mistry and Shapoorji Pallonji Group (SP Group).

“We find all the questions of law are liable to be answered in favour of the appellants, Tata Group and the appeals file by the Tata Group are liable to be allowed and Shapoorji Pallonji group is liable to be dismissed,” the top court said.

The order of NCLAT dated December 18, 2019 is set aside, the Supreme Court added. Both Tata Sons and Mistry had challenged the December 18, 2019 order of the NCLAT which had ordered the reinstatement of Cyrus Mistry as the Chairperson of Tata Sons Limited.

The Supreme court had on January 10, 2020, stayed the NCLAT order.