Sterling & Wilson shares fall 10% after Supreme Court’s verdict against SP Group in the Cyrus Mistry vs Tata case
Shares of Sterling and Wilson Solar, a Shapoorji Pallonji Group (SP Group) company, plunged over 10 per cent after the Supreme Court dismissed appeals of the group and set aside the judgement which had ordered the reinstatement of Cyrus Mistry as Chairman of Tata Sons.
Around 2.30 p.m., shares of Sterling and Wilson Solar Ltd on the BSE were trading at ₹244.95, lower by ₹27.45 or 10.08 per cent from its previous close.
A bench headed by Chief Justice S.A. Bobde said all questions of law are in favour of Tata Group and dismissed the appeals filed by Mistry. The top court upheld the Tata Sons decision to sack Cyrus Mistry on October 24, 2016.
Shapoorji Pallonji Group counsel had argued that Mistry was removed because he was going to place a draft governance structure at the Board meeting on October 24, 2016.
“We find all the questions of law are liable to be answered in favour of the appellants (Tata Group) and the appeals filed by the Tata Group are liable to be allowed and Shapoorji Pallonji group is liable to be dismissed,” said the top court.
The top court said the value of SP Group shares will depend on the valuation by Tata Sons equities and the court will not determine the fair value.
In December 2019, the NCLAT had ruled that the proceedings of the Board meeting of Tata Sons held on October 24, 2016 removing Cyrus Mistry as chairperson was illegal.
The Mistry family, which runs SP Group, owns an 18.4 per cent stake in Tata Sons.
Source: IANS
