Cyrus Mistry Seeks Expunction Of Remarks Against Him In Supreme Court Judgment Allowing Tata Sons' Appeal

The Supreme Court on Monday agreed to hear an application filed by Cyrus Mistry seeking directions for expunging/deleting certain remarks in Supreme Court's judgement delivered on March 26 last year in the Tata Son's appeal. Mistry is aggrieved by certain remarks made against in that judgement by the Supreme Court while allowing Tata Sons' appeal against the order of the National Company Law Appellate Tribunal, which had ordered to reinstate the ousted Chairman Cyrus Mistry.

A Bench comprising Chief Justice of India NV Ramana, Justice AS Bopanna and Justice Hima Kohli decided to hear the matter after 10 days. 

During the hearing, Senior Advocate Janak Dwarkadas appearing for Mistry submitted that certain remarks were made against him in the final judgement and comments affect his reputation, integrity and character.

Senior Advocate Harish Salve appearing for Tata Sons opposed the plea arguing that they are challenging the maintainability of the application.

The Bench however adjourned the matter for 10 days. 

The case was listed today after urgent listing was sought by Senior Advocate Shyam Divan on 15th February.

Through the 26th March order, the Supreme  Court had allowed the appeal of Tata Sons, answering all questions of law framed in the case in its favour, and set aside the NCLAT order. The appeals filed by Shapoorji Pallonji group and Cyrus Mistry were dismissed. It may be noted that last week, the Supreme Court agreed to hear Shapoorji Pallonji Group's petition to review the said judgment in open court. However, Justice V Ramasubramanian dissented from the majority comprising CJI NV Ramana and Justice AS Bopanna and held that no grounds for review were made out.

In last years judgment, a bench led by the then Chief Justice of India SA Bobde had  held that the actions of Tata Sons board against Mistry did not amount to oppression of minority shareholders or mismanagement. The bench also said that it was open for Tatas and Mistry to work out their separation terms.

The Court had observed that the Company Law Tribunal cannot interfere with the removal of a person as a Chairman of a Company in a petition under Section 241 of the Companies Act 2013, unless such removal was "oppressive or prejudicial".

The NCLAT, in its order passed on December 18, 2019,  had quashed the decision taken by the Board of Tata Sons in October 2016 to remove Mistry as the Chairman and had directed to restore Mistry.

The legal battle has its genesis in the company petitions filed by Shapoorji Pallonji Group under Sections 241 and 242 of the Companies Act 2013 alleging oppression and mismanagement in Tata Sons. These petitions were filed in the wake of Mistry's removal. The NCLT Mumbai bench dismissed the petitions, against which appeals were filed in NCLAT. 

On December 18, 2019, The National Company Law Appellate Tribunal restored Cyrus Mistry as the Executive Chairman of Tata Group. Allowing Mistry's appeal, the Appellate Tribunal had set aside the judgment of Mumbai bench of National Company Law Tribunal (NCLT) that had upheld the appointment of N Chandrasekharan as Chairman in his place.

The said NCLAT order was stayed by the Apex Court in January 2020 whereas the judgment was reserved on 17th December 2020.

Case : Tata Consultancy Services Pvt Ltd v Cyrus Investments Pvt Ltd and Others

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