Renowned industrialist, philanthropist, and visionary Ratan Tata passed away in Mumbai on Thursday at the age of 86. His passing, which comes two years after the death of former group chairman Cyrus Mistry, marks the end of one of the few contentious chapters in the Tata Group’s history.
The prolonged and contentious six-year conflict within one of the nation’s most esteemed conglomerates has captured significant media attention, with the intensity of the situation escalating as it transitioned from boardroom disputes to legal tribunals, ultimately reaching the Supreme Court.
What was the feud about between Cyrus Mistry and Ratan Tata?
Cyrus Mistry was affiliated with Shapoorji Pallonji & Co., which has been the largest stakeholder in the Tata Group for three generations. Following the death of his father in 2006, Mistry, as the largest shareholder, secured a position on the Tata board.
Despite Ratan Tata‘s personal endorsement of Mistry’s appointment, differences soon emerged. In October 2016, Mistry was unexpectedly removed from his position after a board vote. He contested his dismissal, alleging mismanagement and oppression of minority shareholders by the board. Initially hesitant to respond, the Tata Group later accused Mistry of mismanagement and underperformance.
The National Company Law Tribunal (NCLT) dismissed Mistry’s petition, prompting him to appeal to the Appellate Tribunal of NCLT.
The National Company Law Tribunal (NCLT) found that Cyrus Mistry was removed from his position as chairman of Tata Sons because the board and its majority shareholders had “lost confidence” in him. This loss of confidence was particularly attributed to Mistry’s actions, which included disclosing sensitive information to the Income Tax department, leaking details to the media, and making public statements against the company and its board members.
In 2018, however, the Appellate Tribunal ruled in favor of Mistry, reinstating him as executive chairman and declaring his removal illegal. Tata Sons subsequently filed a petition with the Supreme Court.
On March 26, 2021, the Supreme Court upheld Mistry’s removal. A three-judge bench led by Chief Justice SA Bobde concluded that there was no evidence of oppression or mismanagement against him at Tata Sons. In May 2022, the Supreme Court also dismissed a petition from the Shapoorji Pallonji Group challenging its earlier ruling.
Mukund Rajan, who managed the Tata brand under Mistry, expressed his disappointment regarding how their relationship deteriorated.
Cyrus Mistry tragically passed away in September 2022 due to a severe car accident on the Ahmedabad-Mumbai highway.
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First Published:
10 Oct 2024, 10:24 PM IST
Business NewsNewsIndiaRatan Tata – Cyrus Mistry row: Here’s a look back at feud between two industrialists
