Supreme Court of India

Tata Consultancy Services Limited v. Cyrus Investments Pvt. Ltd. and Ors.

Neutral citation
Reported as [2021] 12 S.C.R. 903
Bench S.A. Bobde, A.S. Bopanna and V . Ramasubramanian JJ.
Decided 26 March 2021

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

1 Supreme Court bench has cited this judgment.

What the Court ordered

We are of the considered view that the claim for proportionate representation on the Board is neither statutorily or contractually sustainable nor factually justified. 19.49 Placing reliance upon section 163 of the Companies Act , 2013, it was contended that proportionate representation is st atutorily recognised.

Judgment, page 149

From the headnote

Companies Act, 2013 – ss. 241 and 242 – Held: The sine qua non for invoking s.241 is that the affairs of the ompany should have been conducted or are being conducted in a man ner oppressive or prejudicial to some of the members – In a p etition u/ s.241, the Tribunal cannot ask the question whether the removal o f a Director was legally valid and/or justified or not – Th e question to be asked is whether such a removal tantamount to a conduct oppressive or prejudicial to some members – Even in ca ses where the Tribunal finds that the removal of a Director w as not in accordance with law or

Where later benches applied it

Of those, 1 relied on

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