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Authored by : Anshul Parashar*
Citation:
(2021) 9 SCC 449
Bench:
Hon’ble Chief Justice S. A. Bobde, Hon’ble Justice, A.S. Bopanna, Hon’ble Justice V. Ramasubramanian.
Title:
Tata Consultancy Services Limited … Appellant(s)
Versus
Cyrus Investments Pvt. Ltd. And Ors. … Respondent(s)Jurisdiction:
Supreme Court, Civil Appellate Jurisdiction, Civil Appeal Nos. 440 441 of 2020
Laws:
Sec. 241 in The Companies Act, 2013
Sec. 242 in The Companies Act, 2013
Sec. 244 in The Companies Act, 2013
Section 14 in The Companies Act, 2013
Article 75 of the AOA
Article 75 of the Constitution
National Company Law Tribunal (NCLT)
National Company Law Appellate Tribunal (NCLAT)
Introduction:
Tata Sons established Tata Consultancy Services (TCS) as a division on April 1, 1968. Mumbai, Maharashtra is home to this multinational Indian information technology (IT) services and consulting company. TCS has locations in 46 different nations. One of the most influential businessmen in India is the businessman, Ratan Tata. He formerly served as both the Chairman of the Tata Group and the Chairman of Tata Sons. Founded on March 7, 1923, Cyrus Investments Private Limited is an unincorporated organization. It serves as a financial adviser. It falls under the definition of a "company limited by shares" and is a private, unlisted firm. Cyrus Mistry is an entrepreneur from India. From 2012 until 2016, he served as Chairman of the sizable Tata Group of companies. He is one of the directors of Cyrus Investments Private Limited, one of his businesses. On October 24, 2016, Tata Sons Limited's Board of Directors and Majority Shareholders ousted Cyrus Mistry and shifted from his role as Executive Chairman after they lost confidence in his ability to lead the company. The chairman of Tata Sons Limited is N Chandrasekaran, formerly the chief executive officer and managing director of TCS. A general meeting of shareholders decided to remove Cyrus Mistry from the Tata Sons board of directors. Cyrus Mistry then filed a complaint with the National Company Law Tribunal (NCLT) in Mumbai, charging Tata Sons' operational mismanagement and violation of Sections 241, 242, and 244 of the 2013 Companies Act[1]. The question at hand in this instance is whether the NCLAT's order to restore Cyrus Mistry can be appealed. This case deals with the question of whether the NCLT's decision to restore Cyrus Mistry to his previous role as chairman of the TCS group is maintainable. In the well-known case of Tata Consultancy Services Ltd. v. Cyrus Investment Pvt. Ltd. & Ors., also referred to as the Tata- Mistry controversy[2], the Hon’ble Supreme Court issued its ruling. The conflict stems from a boardroom takeover in 2016 that resulted in Cyrus Mistry's resignation as chairman. This case is regarded as one of the country's largest corporate legal disputes.
Publication date and year: September, 2023
D.O.I Link: https://doi.org/10.59126/v2i4a1
Preferred Citation: Anshul Parashar, Tata Consultancy Services Limited vs. Cyrus Investments and Ors., Vol. II-IV, pg 1-10 (2023).
* 3rd Year B.A. LL.B. student at Banasthali Vidyapith, Rajasthan; available at: parasharanshul11@gmail.com.