TATA V. MISTRY: A CRITICAL CASE OF OPPRESSION AND MISMANAGEMENT

Abstract

When we discuss democracy, the majority in the room immediately comes to mind. In these situations, where corporate democracy is dominant, how can we guarantee corporate governance, which includes the protection of minority rights and the absence of oppression? There has been a growing uproar of this dichotomy in the academic community. With its latest ruling on March 26, 2021, the Supreme Court (SC) finally put an end to the historic Tata-Mistry legal dispute. The minority shareholder rights dispute has once again gained attention as a result of the ruling. The goal of this study is to comprehend the notions of minority oppression, poor management, and bias against minority ownership in corporate structures. There is a severe lack of legal jurisprudence on the subject and it has to be revised. The first part of this project will examine the origins of the rule established in Foss v. Harbotlle and how, after proving to be inflexible, related clauses were added to the Indian legal corporate law with some leeway. These clauses have led the way in advancing minority rights and laying the groundwork for the prohibition of discrimination. Since the Tata-Mistry issue is the most recent example of minority discrimination, it has been examined. The primary legal matter addressed by the courts and tribunals in this case, as well as its long-term implications, will be the focus point of the research.