Tata Sons V Cyrus Mistry -Live Updates From Supreme Court(Day 5)

"This particular preposition has been followed in the Voltas case" he said. 

Bench and Mr. Sundaram now discussing a judgment by Lord Denning's on the issue of pre consultation.

"There was an interference. Members of the Board whether nominated by majority or otherwise have a responsibility towards the board. When there is an interference even by minority shareholders, there is a problem" he argues. 

Sundaram now recites the observation of NCLAT

CJI on a lighter note remarks " You have a lot of experience running in your veins to understand this. " 

"I don't think this depends on the cabinet. There are cases where even minority has to be consulted in politics" CJI said

"Yes it does, yourlordship. In fact in politics, majoritanism accounts for everything. This isn't the case under companies Act"

CJI: In the commercial world, money is equivalent to power. Money is a kind of power. If in order to preserve money in a company, somebody seeks assistance of someone outside respected by him or a former chairman, does it amount to loss of independence of board? 

Sundaram: No in fact that is the demand of politics. What is political science is different from corporate understanding.

CJI: Let us take the case of a CM who before the cabinet meeting consults some party colleagues on what to do and what not to do. Will you say he has lost his independence?