In a temporary relief to Tata Sons Pvt Ltd, the Supreme Court on Friday stayed the December 18 order of the National Company Law Appellate Tribunal which reinstated Cyrus Mistry as the Executive Chairman of the company.
A bench comprising CJI SA Bobde, Justices Surya Kant and BR Gavai issued notice to Mistry in the appeal filed by Tata Sons Pvt Ltd.
Tata side gives assurance in court that they do not propose to take any steps invoking powers under Article 75 of the Articles of Association against the minority shareholders of Shapoorji Pallonji group.
In the appeal, Tata Sons says that the NCLAT judgment sets a 'dangerous legal precedent' and is a 'blow to corporate democracy'.
It is contended in appeal that judgment has virtually re-written the Articles of Association of the company to confer new rights on the minority shareholders, which were not otherwise existing.
The present 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. Cyrus Mistry also filed a separate appeal seeking to expunge certain remarks made against him by the NCLT.
On December 18, the Appellate Tribunal ordered the reinstatement of Mistry as the Chairman. Tatas contend that this relief was not even sought by Mistry and the other appellants.
Some of the key points in the statutory appeal filed by Tata Sons under Section 423 of the Companies Act 2013 are :
Karanjawala & Co. represented Tata Sons in the matter.