And for a Friday after the rather unexpected, but refreshing NCLAT judgement on the House of TATAs….. some thoughts….. some musings…..
Nobody disputes the absolute integrity, Trust and Value basis of the 150 year TATA conglomerate operating in more than 100 countries with a business of over 111 Billion dollars, ranging from common salt to steel to cars to Retail to Gold jewelry, to financials to etc. etc. and the most valuable software company TCS. Each and every company managed and run by Professionals and Boards of the highest integrity. Let there be no misconceptions. The dispute has nothing to do with the Governance or running of more than 116 TATA companies. The problem is, like in all business families, Egos of the Patriarchs. Ratan Tata and Cyrus Mistry – who is right and who is wrong…..
India is already a three Trillion $ economy and hoping to cross five trillion. Hence the old ways of doing business are changing and Attitudes, Checks and balance mechanisms have to change even faster. Thus the country has passed the momentous new law Insolvency and Bankruptcy Code (IBC) – a paradigm shift to “Creditor in control v/s the hitherto Debtor in Possession” model. The IBC was followed by establishment of National Company Law Tribunal (NCLT) as the first dispute redressal and NCLAT as the Appelant body and finally the Supreme Court. Ratan or Cyrus who looses who wins – but importance of Governance has WON.
Let us all hope for a speedy resolution. Let all Tata stakeholders heed Chairman Chandra’s message and let us all support Good Governance to prevail, the Ethical way, the legal way, the SEEGOS way.