JOIN USTata Sons acted quickly on Tuesday to protect itself from possible legal action by Cyrus Mistry, the chairman it sacked a day earlier.
It filed multiple caveats on Tuesday, fearing a courtroom manoeuvre against its decision to bring Ratan Tata back from retirement to take Mistry’s place. In effect, Tata Sons, holding company of the salt-to-software conglomerate, is guarding itself against any ex-parte order. As interim chairman of Tata Sons, Ratan Tata will hold the fort for four months while a panel looks for a new chairman.
Mistry, 48, was earlier the MD of the Shapoorji Pallonji group. Controlled by Mistry’s family, it has made no formal move to counter the Tatas. It holds about 18% equity in Tata Sons, and is the single largest shareholder, while 66% of the equity capital is held by philanthropic trusts endowed by members of the Tata family.
In the legal battle, the Tatas will be represented by Abhishek Manu Singhvi, who confirmed to a TV channel he would appear in court on Wednesday.
Tata Sons, however, declined to comment on the developments.
Some reports suggested the Shapoorji Pallonji group was also filing caveats, but a spokesperson indicated otherwise.
“A caveat is a notice filed by a party fearing legal action and seeking notice before action. The Tatas have filed caveats seeking notice from Cyrus Mistry fearing legal action. Mistry has not filed any caveats. He has already made a statement that such concerns are misplaced at this stage," the spokesperson said.
The company did not take any position on whether it would approach the courts in the coming days.