TATA versus Mistry: SC decides to hear review petition by Shapoorji Pallonji Group in open court

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New Delhi, February 21

The Supreme Court has decided to hear in open court a petition filed by Shapoorji Pallonji Group seeking review of its March 26, 2021 verdict setting aside a National Company Law Appellate Tribunal (NCLAT) order restoring Cyrus Mistry as the Executive Chairman of the Tata Group.

“Applications seeking oral hearing of the Review Petitions are allowed,” read the February 15 order released on Monday.

A three-judge Bench of Chief Justice of India NV Ramana, Justice AS Bopanna and Justice V Ramasubramanian – which took the decision by 2:1 – posted the matter for hearing in an open court on March 9.

However, Justice Ramasubramanian dissented, saying the grounds raised in the review petition didn’t fall within the parameters of review.

It’s important to note that review petitions are generally heard “in chamber” and not in open courts by a procedure called “hearing by circulation” where advocates representing the parties are not allowed to argue. But in exceptional cases, the court allows open court hearing if convinced about its need.

Allowing the Tata Group’s appeal against the NCLAT’s December 18, 2019 order, a three-judge Bench led by the then CJI SA Bobde had on March 26, 2021 said, “All the questions of law are liable to be answered in favour of the appellants Tata Group and the appeals filed by the Tata Group are liable to be allowed and those by Shapoorji Pallonji Group are liable to be dismissed.”

In 2020, the top court stayed the NCLAT order by which Mistry was restored as the Executive Chairman of the conglomerate.

Shapoorji Pallonji Group had contended before the Supreme Court that removal of Mistry as the chairman of Tata Sons in a board meeting held in October 2016 was akin to a “blood sport” and “ambush” and was in complete violation of principles of corporate governance and pervasive violation of Articles of Association in the process.

The Tata Group had vehemently opposed the allegations and said there was no wrongdoing and the board was well within its right to remove Mistry as the chairman.

Mistry—who succeeded Ratan Tata as chairman of the Tata Sons in 2012 – was removed four years later.