The Supreme Court bench led by Chief Justice of India is hearing the appeal filed by Tata Sons Pvt Ltd against the NCLAT direction to reinstate Cyrus Mistry as the Executive Chairman of the company.Live Updates from the hearing available here...
The Supreme Court bench led by Chief Justice of India is hearing the appeal filed by Tata Sons Pvt Ltd against the NCLAT direction to reinstate Cyrus Mistry as the Executive Chairman of the company.
Live Updates from the hearing available here :
Live Updates
2020-12-08 08:12:15
8 Dec 2020 9:20 AM GMT
Salve : If Tata Sons is distributing huge amounts of dividends, where is the question of winding up Tata Sons? That is a long and short of this case.
8 Dec 2020 9:20 AM GMT
Salve : In ordinary circumstances, Mistry, with 18% shares, will not get even 1% share in the Board, that too in a private company.
8 Dec 2020 9:20 AM GMT
Salve points out that the 1956 did not have a condition that the Company Court should come to a conclusion that winding up order is otherwise necessary.
Parliament has now decided that this condition should be there in the 2013 Act.
8 Dec 2020 9:12 AM GMT
CJI : So your contention is that the Tribunal cannot choose a particular person as the Director?
Salve : Generally, yes. Tribunal cannot say so and so will be the Director.
8 Dec 2020 9:11 AM GMT
Salve : This power (Section 242(k)) is nuanced. The appointment is for a specific purpose. In that case the Directors come with a mandate.
CJI : It is like appointing a Commissioner.
Salve : Yes
8 Dec 2020 9:09 AM GMT
CJI : Section 242(k) talks about the power to appoint a Director to report to the Tribunal. It is like appointing a Commissioner Director.
Salve : Virtually, yes.
8 Dec 2020 9:09 AM GMT
CJI : Section 242(h) speaks about power of Tribunal to remove as Managing Director etc. But there is no power given to set aside an order of removal.
8 Dec 2020 9:09 AM GMT
Salve : Ultimately the selection must be by the Shareholder.
CJI : Precisely. We do not see any power for the Tribunal to select Chairman.
8 Dec 2020 9:05 AM GMT
Salve : Can the Tribunals select the Chairman? The answer is No. It is for the shareholders to decide.
8 Dec 2020 9:03 AM GMT
Salve coming back to arguments.
The Tribunal has no power to rewrite the Articles of Association.