Ratan Tata made Cyrus Mistry’s appointment personally. But differences soon cropped up.
Iconic industrialist, philanthropist and visionary Ratan Tata died in Mumbai on Thursday at the age of 86. He had been ailing for some time and was admitted to the Intensive Care Unit of Breach Candy Hospital. His death – coming two years after that of former group chairman Cyrus Mistry – rings down the curtains on one of the few controversial episodes involving the Tatas.
The unseemly six-year feud within one of the country’s most respected conglomerates had generated headlines — their shock effect increasing as the battle moved from board-rooms to tribunals and then went all the way to the Supreme Court.
Cyrus Mistry was part of the Shapoorji Pallonji & Co. – the largest stakeholder of the Tata Group for three generations. As the largest shareholder, the group was granted a seat on the Tata board, which went to Cyrus Mistry after the death of his father in 2006.
In 2012, he officially succeeded Ratan Tata as chairman of the Tata Group – a move critics attributed more to the longtime family association than the strength of the candidate.
Ratan Tata had made the appointment personally. But differences soon cropped up and in October 2016, Cyrus Mistry was abruptly dismissed after a boardroom vote. He challenged his removal, accusing the board of mismanagement and oppressing minority shareholders. The group, initially reticent, later alleged mismanagement and poor performance on his part.
The National Company Law Tribunal (NCLT) rejected Mistry’s petition, after which he went to the Appellate Tribunal of NCLT.
The NCLT had held that Mistry was removed as the Tata Sons Board and its majority shareholders had “lost confidence” in him, especially after he sent out sensitive information about the Group to the Income Tax department, leaked information to the press, and gave public statements against the company and its board members.
But in 2018, the Appellate Tribunal restored him as the group’s executive chairman, maintaining that his removal was illegal.
Tata Sons responded with a petition in the Supreme Court.
On March 26, 2021, the Supreme Court upheld Mistry’s removal. A three-judge bench of the Supreme Court of India, led by Chief Justice of India (SA Bobde) determined there was no case of oppression and mismanagement against Cyrus Mistry at Tata Sons. In May 2022, the top court also dismissed a petition filed by Shapoorji Pallonji Group against its order.
Mukund Rajan, Brand Manager for the Tatas under Cyrus Mistry, had said he was deeply unhappy with the way his ties with his mentor soured.
Cyrus Mistry died in September 2022 after a massive car crash on the Ahmedabad-Mumbai highway.
