SC stays NCLAT order restoring Cyrus Mistry as executive chairman of Tata Group
New Delhi, Jan 10: The Supreme Court on Friday stayed in to the NCLAT order restoring Cyrus Mistry as executive chairman of the Tata Group, observing that there were "lacunae" in the orders passed by the Tribunal.
A bench of Chief Justice S A Bobde and Justices B R Gavai and Surya Kant said the National Company Law Appellate Tribunal (NCLAT) decision suffers from "basic errors and we have to hear the matter in detail".
The bench also said, "You (Cyrus) have been out of the saddle quite a long time. Does this hurt you....How does it hurt you today".
The bench said there was no prayer in the petition for reinstatement of Mistry but the tribunal went ahead with it and ordered his reinstatement.
"We find there are lacunae in the judicial orders passed by the NCLAT," the bench said issuing notices to Mistry and others.
Tata Sons Private Ltd (TSPL) challenged the December 18 decision of NCLAT that gave a big relief to Cyrus Investment Pvt Ltd and Mistry, restoring him as the executive chairman of TSPL.
The bench issued notices to Cyrus Investment Pvt Ltd, Mistry and others and posted the matter after four weeks.
The top court also ordered that the Tatas will not exercise power under Article 25 of the Company Law for pushing out shares of minority holders in the company.
Senior advocate C A Sundaram, appearing for the company Cyrus Investment Pvt Ltd, submitted that instead of staying the NCLAT order, notice should be issued and two weeks be given for filing the reply.
However, the bench said, "Our first impression is not good about the order of the tribunal. The tribunal granted the prayer which was not prayed".
The Mistry's side wanted to place a note about an interim arrangement which was not accepted by the bench.
Senior advocate N K Kaul appeared for Mistry while senior advocate Shyam Divan was appearing for the shareholders which were on Mistry's side.
During the hearing, Sundaram said he was not pressing for the consequential relief of reinstatement of Mistry but was against the wrongful removal of Mistry from Tata.
Senior advocates A M Singhvi, Harish Salve, Mukul Rohatgi and Mohan Parasaran represented the Tatas.
While the petition was pending, Mistry came out with a statement on Sunday saying that he is not interested in returning to the Tata Group and the decision was made in the interest of the Group, whose interests are far more important than the interests of any individual.
"To dispel the misinformation campaign being conducted, I intend to make it clear that despite the NCLAT order in my favour, I will not be pursuing the executive chairmanship of Tata Sons, or directorship of TCS, Tata Teleservices or Tata Industries.
"I will however vigorously pursue all options to protect our rights as a minority shareholder, including that of resuming the thirty-year history of a seat at the Board of Tata Sons and the incorporation of the highest standards of corporate governance and transparency at Tata Sons," he had said.
TSPL, formerly known as Tata Sons Limited, had sought setting aside of the judgment in toto "of NCLAT, alleging it was "completely inconsistent with the annals of corporate law" and reflected "non-appreciation of facts", which was "untenable in law".
NCLAT had held the group's chairman emeritus Ratan Tata's actions against Mistry were oppressive and the appointment of a new chairman was illegal.
It, however, had stayed operation of its order with respect to Mistry's reinstatement for four weeks to allow TSPL to file an appeal in the top court.
"In other words, far from putting an end to the alleged acts complained of, the judgment (of the NCLAT) has sown the seeds for a never-ending discord and conflict between shareholders of the appellant (TSPL), creating a recipe for an unmitigated disaster," it said.
The plea raised questions of law and said the order restoring Mistry to his "original position" as the executive chairman of TSPL for the "rest of the tenure" was illegal as his tenure "stood extinguished in March 2017".
The plea termed "illegal" NCLAT's declaration that Chandrasekaran's appointment as the chairman of TSPL was wrong and claimed he was appointed "in accordance with the articles and duly approved by the board and shareholders".
It alleged the NCLAT granted relief to Mistry which were not even sought.
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Kulkarni became victim of BJP conspiracy as he grew politically in North Karnataka: Shivakumar
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Bengaluru (PTI): Deputy Chief Minister D K Shivakumar claimed on Friday that Congress MLA Vinay Kulkarni, who was sentenced to life imprisonment in a murder case, has become a victim of a BJP conspiracy because he was growing politically in the north Karnataka region.
Stating that he has faith in Kulkarni and believes he has done nothing wrong, he said the former minister will fight the case legally by filing an appeal.
A Bengaluru court on Friday sentenced Kulkarni and fifteen others to life imprisonment in the BJP leader Yogeshgouda Goudar murder case.
On Wednesday, Santhosh Gajanan Bhat, Judge of the Special Court for cases involving elected representatives, convicted Kulkarni and others under various IPC sections, including criminal conspiracy and murder.
“I respect the court. But there was a big conspiracy in this case. When the police were about to file a B-report, the CBI was given the case to harass him (Kulkarni). Vinay Kulkarni has become a victim of a BJP conspiracy as he was growing politically in north Karnataka,” Shivakumar said.
Speaking to reporters in New Delhi, he said Kulkarni has several legal options.
“I have spoken to his family. He swore on God and told me that he had not done anything wrong. I still have faith in him. I feel that he has not done anything wrong. He has an opportunity to file an appeal,” he said, adding that he stands with Kulkarni’s family and supporters and believes he will get justice.
The case pertains to the killing of Goudar, a BJP zilla panchayat member, in Dharwad on June 15, 2016. Kulkarni was a minister at the time. Hired assailants allegedly attacked and hacked Goudar to death in his gym in Saptapur, Dharwad.
Following demands from Goudar’s family and others, the then-BJP government transferred the case to the CBI in 2019.
Veteran BJP leader and former Chief Minister B S Yeddyurappa, under whose tenure the case was handed over to the CBI, told reporters in Chikkamagaluru, “I said what I needed to say when the crime happened, and what I said—that the guilty should be punished and justice should be served—has proven true.”
Speaking to reporters in Bengaluru, BJP leader and MLC C T Ravi, reacting to the court order, said, “Justice delayed, but not denied.”
