The Supreme Court overturned the NCLAT order restoring Cyrus Mistry as executive chairman of the conglomerate on Friday, resulting in a 6% increase in Tata Group stock.
The Supreme Court overturned the NCLAT order restoring Cyrus Mistry as executive chairman of the conglomerate on Friday, causing Tata Group stock to rise to 6%. On the BSE, Tata Steel was up 5.89 per cent, Tata Communications was up 5.23 per cent, Tata Motors was up 4.80 per cent, and Tata Power Company was up 4.82 per cent. Tata Consumer Products increased 2.89 per cent, Tata Investment Corporation increased 2.70 per cent, Tata Chemicals increased 2.13 per cent, Tata Metaliks increased 1.37 per cent, Tata Steel Long Products increased 1.72 per cent, and TCS increased 0.99 per cent. The Supreme Court overturned the NCLAT order restoring Cyrus Mistry as the conglomerate’s executive chairman on Friday, handing the Tata Group a big victory.
The appeals filed by Tata Group will be heard by a bench consisting of Chief Justice SA Bobde, Justices AS Bopanna and V Ramasubramanian. The bench aforementioned, “The order of the National Company Law appellate court (NCLAT) dated December eighteen, 2019 is about aside.” “All queries of law area unit prone to be answered in favour of the appellant’s Tata cluster, and also the appeals filed by the Tata cluster area unit prone to be accepted, whereas those filed by the Shapoorji Pallonji cluster area unit prone to be unemployed,” the court aforementioned.
Shapoorji Pallonji Group had told the Supreme Court on December 17 last year that Mistry’s removal as chairman of Tata Sons in a board meeting held in October 2016 was analogous to a blood sport and ambush, and that the procedure was in complete violation of corporate governance standards and pervasive violations of the Articles of Association.
The Tata Group has vigorously denied the charges, claiming that there was no wrongdoing and that the board had every right to suspend Mistry from his role as chairman.