Sunday, April 25, 2021

Tata vs Mistry: Shapoorji-Pallonji group files review petition in SC

 In its March 26 verdict, the court had ruled in favor of the Tata group


The SP Group has filed a review petition before the Supreme Court challenging the court’s March 26 verdict, in which it had ruled in favor of the Tata group. The SP group and the Tata group were locked in a bitter dispute after SP group scion, Cyrus Mistry, was removed by the Tata Sons board as its chairman. A Bench led by former Chief Justice of India S A Bobde had ruled that Mistry's removal was in sync with the law and SP group, a minority shareholder in Tata Sons, could not seek a board seat.

“The power of review is very limited, and typically addresses an error on the face of the record in the judgment. It is usually decided without a fresh hearing, and by the same Bench that passed the judgment against which the review is filed. It is pertinent that the Bench that passed the judgment included Chief Justice Bobde, who has just retired, and will not be part of the Bench deciding the review," said Anand Desai, managing partner, DSK Legal.

According to lawyers, yet another legal battle might be brewing between the two warring sides and unless the Tatas and Mistrys sit together and settle the issue, the legal fight would continue on various issues. The Mistry family owns an 18.4 percent stake in Tata Sons while the rest is owned by the Tatas.

The Mistrys have sought a valuation of Rs 1.74 trillion for their stake in Tata Sons while the Tatas have pegged it far lower at Rs 80,000 crore. The SC has left the valuation of shares on the warring parties to decide.

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