Shares of Tata Group companies, on Friday, rallied up to 6 per cent in intra-day trade on the BSE after the Supreme Court pronounced its verdict in favour of the Tata Group in the high-profile Tata vs Mistry fued. The judgment on the five-year long protracted legal battle sets a precedent on various important matters in the courtroom battles.
Among individual stocks, Tata Steel and Tinplate Company of India rallied 6 per cent, each, on the BSE. Tata Steel Bsl, Indian Hotels, Tata Motors, Tata Power, Titan Company, Tata Coffee, Tata Investment Corporation, Tata Chemicals and Tata Communications were up in the range of 3 per cent to 5 per cent. In comparison, the S&P BSE Sensex was up 1.3 per cent at 49,078 points at 11:46 am.
Delivering its judgment in the four-and-a-half-year-old corporate war between Tata Group and the Mistrys, the Supreme Court ruled in favour of Tata Sons, allowing its appeals and dismissing the Pallonji Group’s plea.
While the National Company Law Tribunal (NCLT) Mumbai had sided with the Tatas, the NCLAT had termed Mistry’s removal illegal and reinstated Mistry as Tata group chairman. It had also termed his successor N Chandrasekaran’s appointment illegal. The Tatas then moved the Supreme Court, seeking to overturn the NCLAT judgment.
Tata Trusts, which owns a 66 per cent stake in Tata Sons, is chaired by Ratan Tata, the patriarch of the Tata group, while the Mistry family owns a 18.4 per cent stake in the company. CLICK HERE TO READ FULL REPORT