The Supreme Court today ruled in favor of Tata Sons. In fact, the Supreme Court overturned the decision of the National Company Law Appellate Tribunal (NCLAT) to appoint Cyrus Mistry as re-president of the company. The NCLT had on December 17, 2019, re-appointed Mistry to the post of Tata Sons President. The same decision of the NCLT was overturned by the Supreme Court today.

The removal of Cyrus Mistry as Tata Sons president has been announced by the NCLT. The NCLAT had ordered Mistry to be re-elected as president, against which the Tata Sons went to the Supreme Court. The case went to the Supreme Court on January 2, 2019.

The case has been going on for 4 years in tribunal and court
On 24 October 2016, Cyrus Mistry was removed as Tata Sons president. He had filed suit against it in December 2016 at the Company Law Tribunal (NCLT). In July 2018, the NCLT rejected Mistry’s appeal and upheld the Tata Sons decision. Mistry went against the NCLAT. In December 2019, Mistry was again appointed as Tata Sons president. Tata Sons appealed to the Supreme Court in January 2020.

In 2016, Tata Group removed Cyrus Mistry from Tata Sons
On 24 October 2016, Tata Group removed Cyrus Mistry as Tata Sons president. Ratan Tata was appointed as interim president. Tata Sons has said that the way the Mystery works is not compatible with the way the Tata Group operates. The Tata group later appointed N. Chandrasekharan as the chairman of Tata Sons. Cyrus Mistry was the sixth president of the Tata Group. Ratan Tata retired as chairman of Tata Sons in December 2012, following which Cyrus Mistry was made president.

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How much the Tata Trust and the Mistry family share
The Mistry family owns 18.4% of Tata Sons. Tata Sons is the second largest shareholder of Tata Sons. Tata Trusts holds a 66% stake in Tata Sons. By March 2020, all the Tata group companies will be worth Rs 7.92 lakh crore. However, their market capitalization is Rs 11.09 lakh crore by March 2019.

The Tata Sons are different from the Tata group
The Tata Group comprises more than 100 companies. All these are controlled by Tata Sons. Tata Sons accounts for 25% to 73% of all major group companies. Tata Investment Corporation holds a majority of 73%.

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