Tata Sons today said if the Supreme Court finds allegations of shareholder oppression in the company to be true, it will buy Shapoorji Pallonji Group's stake at fair value. Appearing for Tata Sons, senior lawyer Harish Salve said the company's article of association provides for such a buyout. The Shapoorji Pallonji Group owns 18.4% stake in Tata Sons. The Supreme Court was hearing Tata Sons' petition against an order by the National Company Law Appellate Tribunal.
The appellate tribunal had ordered the reinstatement of Cyrus Mistry as executive chairman of Tata Sons, while ruling that the company had been oppressive to minority shareholders. An apex court bench headed by Chief Justice S.A. Bobde, which concluded hearing the case today, has reserved its order.
In its arguments today, Shapoorji Pallonji Group reiterated the conduct of Tata Sons' board violated corporate governance principles. Lawyer Shyam Divan, appearing for Shapoorji Pallonji Group, said Mistry's removal as executive chairman was in breach of Tata Sons' articles of association.
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