Final hearing of Tata Vs Mistry case: Everything to know about the dispute

The Supreme Court is currently hearing the final hearing of the Tata Vs Mistry case. Chief Justice SA Bobde is hearing the dispute between the two groups.

New Delhi (Anish Yande):

The Supreme Court is currently hearing the final hearing of the Tata Vs Mistry case. The case has been going on for four years, shifting from the National Company Law Appellate Tribunal to the Supreme Court. Chief Justice SA Bobde is hearing the dispute between the two groups.

The History of the Tata Vs Mistry Dispute:

The Sharpoor Pallonji Group acquired F.E. Dinshaw and Co in 1936 first, which led to the Group's first stake in Tata Sons. Pallonji Mistry was instrumental in growing the company to become a $2 billion construction conglomerate based in Mumbai. The stake of the  Sharpoor Pallonji Group in Tata Sons increased to a 12.5% stake.

In 2007, Pallonji Mistry handed over the company to his sons Shapoor and Cyrus.

Cyrus Mistry was appointed as the chairman of Tata Sons in 2013. After serving as chairman for nearly four years, he was abruptly removed, in October 2016. Ratan Tata became the chairman for four months till the next chairman was appointed. 

Tata's management said that Cyrus Mistry's style of management and decision making differed from Tata's management culture. Cyrus Mistry alleged that Tata Sons had legacy problems. He reportedly had several disagreements over the issue of management with the board.

Mistry's ouster led to a legal dispute between the two businesses. The dispute went to the National Company Law Appellate Tribunal, which reinstated Cyrus Mistry as the executive chairman. The National Company Law Tribunal had earlier stated that a trust deficit between Mistry and Tata had led to his ouster. 

Tata Group challenged the NCLAT's order in the Supreme Court. The apex court had then stayed the order by NCLAT. 

SP Group looking to sell stake in Tata Sons:

Currently, Tata Sons have issued a proposal to buy back the stakes from the Shapoorji Pallonji Group. The SP Group has an 18.37 percent stake in Tata Sons, which has been valued at 1.75 lack crores. The court had previously prevented the shares from being sold by the SP Group.

Tata Sons had requested the stake to be sold after the court issued the order. Previously, Tata Sons were against the selling of the shares, stating that they may lose investors if the Shapoorji Pallonji Group defaults on the deal. The SP Group has alleged that Tata Sons are causing a disturbance in the process of selling the stake. 

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