After Cyrus Mistry's Shock Ouster, Preemptive Action By Tatas

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After Cyrus Mistry's Shock Ouster, Preemptive Action By Tatas

Cyrus Mistry said his removal was illegal, should be given 15-day notice to make case for himself

Mumbai:  The Tata Sons has filed multiple caveats in courts and other forums to prevent any ex parte or one-sided orders being passed against it if Cyrus Mistry or his family's Shapoorji Pallonji Group moves court against his ouster as chairman of Tata Sons on Monday.    

The Tatas have filed the caveats in the Mumbai High Court, the Delhi High Court, and also before the national companies law tribunal.

The Shapoorji Pallonji group said this morning that there is no basis "at this stage" for media reports that Cyrus Mistry is contemplating taking Tata Sons to court.

"Neither the SP Group nor Mr Cyrus Mistry have made any statement yet. While the circumstances are being studied, there is no basis to media speculation about litigation at this stage.  As and when a public statement becomes necessary, it would be made," said a spokesperson of the Shapoorji Pallonji Group, which is owned by Mr Mistry's family.

At a Tata Sons board meeting on Monday, sources have told NDTV, Mr Mistry had called his removal illegal, arguing that he should be given a 15-day notice to make a case for himself according to the Tata rule book.

Mr Mistry reportedly said he would challenge the decision when the board told him that it had "legal opinion" in favour of its decision to remove him. Of the nine-member board, six voted in favour of his removal, two abstained. Mr Mistry, as the ninth member, refused to be part of the process.

Mr Mistry's ouster has shocked markets and corporate India. Most Tata shares traded lower on Tuesday.

Ratan Tata, 78, has been handed interim charge while the group looks for a new chairman. Mr Tata met top CEOs at the group's Bombay House office in Mumbai today and asked them not to worry about changes in leadership, asking them to focus on business and drive their companies to be market leaders. He assured them that the long-term interests of the group will get priority.

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In a letter to employees on Monday, Ratan Tata wrote that "in the interest of the stability of and reassurance to the Tata Group," he is returning as Chairman.

The Shapoorji Pallonji group, which runs a construction business, owns nearly 18 per cent stake in Tata Sons and Mr Mistry continues to be a member on the board of directors of the company.

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