Tata vs Mistry: Can judiciary overrule shareholders in company matters?

The National Company Law Appellate Tribunal’s order to reinstate Cyrus Mistry as the chairman at Tata Sons has got the legal fraternity into a huddle, as they debate whether the judiciary can overrule the primacy of shareholders on such a matter.

Top legal experts expect the Supreme Court to provide clarity while dealing with the NCLAT order to reinstate Mistry, whose official term would have ended two years ago. He was appointed Tata Sons’ chairman from December 2012 to March 2017, but was ousted by the board in October 2016. Employment contracts can only offer compensation as relief and not reinstatement, and at best the SC may offer relief to Mistry as a minority director, said the general counsel of a leading multinational.