New Delhi: Drawing curtains on one of India’s major corporate legal battle, the Supreme Court on Friday set aside the NCLAT order that restored Cyrus Mistry as executive chairman of Tata Sons.
In December 2019, the National Company Law Appellate Tribunal (NLCAT) restored Mistry as the executive chairman of Tata Sons.
Mistry succeeded Ratan Tata in 2014 but was ousted from the position in 2016.
Following is the chronology of developments in the Tata-Mistry case.
Oct 24, 2016: The Board of Directors of Tata Sons, the holding company of Tata Group, removed Cyrus Mistry as the executive Chairman and named Ratan Tata as an interim Chairman of the group.
According to Mistry, he was removed because he was going to place a draft governance structure at the Board meeting on the same day.
Mistry belongs to the Shapoorji Pallonji (SP) Group, a leading construction firm. The SP Group holds around 18 per cent stake in Tata Sons.
Cyrus Mistry is the son of Pallonji Shapoorji Mistry, the Chairman of SP Group.
Days after the incident, Ratan Tata said that the Board had lost confidence in Mistry and his ability to lead the Tata Group in future.
Dec 20, 2016: Two Mistry family backed investment firms, Cyrus Investments Pvt Ltd and Sterling Investments Corporation Pvt Ltd, move National Company Law Tribunal (NCLT) Mumbai, alleging oppression of minority shareholders and mismanagement by Tata Sons.
They also challenged Mistry's removal from the top position.
Jan 12, 2017: Tata Sons names N Chandrashekaran as Chairman, the then TCS Chief Executive Officer and Managing Director.
Feb 6, 2017: Mistry removed as a director on the board of Tata Sons.
Mar 6, 2017: NCLT Mumbai sets aside plea of the two investment firms of Mistry family over maintainability issue, citing they didn't meet the criteria of 10 per cent ownership in a company for the filing of a case of alleged oppression of minority shareholders under the Companies Act.
The Mistry family owns 18.4 per cent stake in the closely-held Tata Sons but the holding is less than 3 per cent if preferential shares are excluded.
Read More: SC upholds Tata Sons’ decision to sack Cyrus Mistry as chairman
Apr 17, 2017: NCLT Mumbai also rejects plea by the two investment firms seeking waiver in the criteria of having at least 10 per cent ownership in a company for filing case of alleged oppression of minority shareholders.
Apr 27, 2017: Investment firms move NCLAT, the appellate tribunal, challenging NCLT order. They also challenged rejection of their waiver plea.
Sep 21, 2017: The NCLAT directs the Mumbai-bench of the NCLT to issue notice and proceed in the matter.
Oct 5, 2017: Two investment firms approach the principal bench of NCLT at Delhi, seeking transfer of the matter from Mumbai to Delhi citing likelihood of bias. The principal bench reserves order on the plea of the two investment firms.
Oct 6, 2017: Principal bench of NCLT dismisses the pleas and imposed a cost of Rs 10 lakh on the two investment firms, which was to be shared by both.
Jul 9, 2018: NCLT Mumbai dismisses pleas of Mistry challenging his removal as Tata Sons chairman as also the allegations of rampant misconduct on part of Ratan Tata and the company's Board.
NCLT said it found no merit in his allegations of mismanagement in Tata group firms.
Aug 3, 2018: Two investment firms approach NCLAT against the order of the NCLT dismissing his plea challenging his removal as chairman of the company.
Aug 29, 2018: NCLAT admits petition filed by Cyrus Mistry in his personal capacity and decided to hear along with the main petitions filed by the two investment firms.
May 23, 2019: NCLAT reserves its order after completing the hearing in the matter.
Dec 18, 2019: NCLAT restores Mistry as executive chairman of Tata Sons, but suspended its implementation for four weeks in order to provide time for Tatas to appeal.
Jan 2, 2020: Tata Sons, challenges NCLAT decision of December 18, 2019 before Supreme Court.
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Jan 10, 2020: Supreme Court stays NCLAT decision.
Sep 22, 2020: Supreme Court restrains Shapoorji Pallonji Group from pledging its share in Tata Sons.
Dec 8, 2020: Final hearing in the dispute commences.
Dec 17, 2020: SC reserves verdict in the dispute.
Mar 26, 2020: SC delivers its verdict and sets aside NCLAT order restoring Mistry as executive chairman of the Group.
(With PTI Inputs)
