Mumbai, Mar 26 (IANS): The shares of Tata Group companies shot up on Friday after the Supreme Court came up with a favourable judgement for the group in the case relating to removal of Cyrus Mistry as the as the executive chairman of the conglomerate.
The Supreme Court on Friday accepted all contentions of the Tata Group and set aside the order of the NCLAT, which restored Cyrus Mistry as the executive chairman of the Tata conglomerate.
A bench headed by Chief Justice S.A. Bobde said all questions of law are in favour of Tata Group and dismissed the appeals filed by Mistry. The top court upheld the Tata Sons decision to sack Cyrus Mistry on October 24, 2016.
Post the verdict shares of Tata Motors surged over 4 per cent and those of Tata steel rose 5 per cent.
Around 12 noon, stock price of Tata Steel on the BSE was at Rs 761.85, higher by Rs 38.95 or 5.39 per cent from its previous close.
Shares of Tata Motors were Rs 298, higher by Rs 12.50 or 4.38 per cent from its previous close. Share price of Tata Consultancy Services was at Rs 3,096, higher by Rs 27.95 or 0.91 per cent.
Tata Consumer Products' shares were trading at 2.01 per cent higher at Rs 627.55 per share on the BSE, and the stock price of Tata Communications were at Rs 1,104.65, up Rs 30.75 or 2.86 per cent.
The top court's judgement comes as a major boost for the group.
In December 2019, the NCLAT had ruled that the proceedings of the Board meeting of Tata Sons held on October 24, 2016 removing Cyrus Mistry as chairperson was illegal, following which Tata Sons moved the Supreme Court.
Shapoorji Pallonji Group counsel had argued that Mistry was removed because he was going to place a draft governance structure at the Board meeting on October 24, 2016.
"We find 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 Shapoorji Pallonji group is liable to be dismissed," said the top court.
The top court said the value of SP Group shares will depend on the valuation by Tata Sons equities and the court will not determine the fair value.