The Supreme Court on Tuesday ordered a status quo on the transfer or pledging of Tata Sons shares by Shapoorji Pallonji Mistry Group companies, ruling in favour of the Tata Group. Today's order restricts the SP Mistry Group from transferring or pledging Tata shares for the time being. The top court said it would take up the matter for hearing of final arguments on October 28, directing the parties to maintain status quo till then.
The Tata Group had moved the Supreme Court to restrict SP Mistry Group from raising capital against their shareholding in Tata Sons.
The Shapoorji Pallonji Group, controlled by tycoon Pallonji Mistry and his family which owns a 18.37 per cent stake in Tata Sons, plans to raise Rs 11,000 crore from various sources.
It had earlier signed a deal with a Canadian investor for Rs 3,750 crore in the first tranche against a portion of its stake in Tata Sons.
The SP Group's shareholding in the country's largest business house is estimated at more than Rs 1 lakh crore.
Former Tata Sons chairman Cyrus Mistry, son of Pallonji Mistry, told the Supreme Court bench that Tata Group is stopping his group from "pledging our shares and throttling us... causing havoc". "We have got 60,000 employees and one lakh migrant workers to feed. Tata Sons is not allowing our shares to be sold," he said.
"Tomorrow, if Warren Buffett comes and tries to buy, we will have to pay 30 per cent... Mischief conducted by Mistry," said Tata Sons, urging the top court to restrict the sale of its shares owned by the SP Mistry Group.
Tata Sons said it is ready to buy its shares owned by the SP Mistry Group, saying: "In 4 weeks, situation may be beyond repair if Mistry is not stopped."
Cyrus Mistry was sacked as chairman of Tata Sons - the holding company of Tata Group - in 2016 after he fell out with group patriarch Ratan Tata over corporate governance issues at Tata companies.
Since then, he has been embroiled in a legal battle claiming minority shareholder oppression and mismanagement.
In January, Cyrus Mistry said he would not seek to reclaim his board seats and position as executive chairman of the salt-to-software conglomerate after a company's tribunal in December ordered he be reinstated.