Tata Sons wins legal battle over former chairman Mistry's ouster

[NEW DELHI] Tata Sons won a four-year-long legal battle with India's Supreme Court approving the move by the nation's biggest conglomerate to oust Cyrus Mistry as chairman.

The court ruled that the ouster of Mr Mistry in 2016 was legal, and rejected his allegation of mismanagement at Tata Sons and oppression of minority shareholders. The court also upheld Tata Sons' rules on minority shareholders' rights, making the sale of shares by investors difficult.

The verdict removes an uncertainty for the Tata group, which runs businesses that make products from salt to the luxury Jaguar sedans, and will allow it to focus on accelerating growth. For the Shapoorji Pallonji Group the verdict comes as a blow just as it was seeking avenues to raise money to repay burgeoning debt.

The top court also overturned a company appellate tribunal's December 2019 ruling that said Mr Mistry's ouster was illegal.

BLOOMBERG