Source: The Economic Times
The Tata group is leaving no stone unturned when it comes to defending itself against potential legal action by Cyrus Mistry following his ouster as chairman of Tata Global Beverages Ltd (TGBL) on Tuesday.
The company has appointed legal eagle Cyril Shroff to lead a team that will strategise defence against any challenge of the board processes that led to Mistry’s dismissal, said two people aware of the matter.
In a letter to the company, Mistry said the vote by the board to oust him hadn’t been on the agenda and therefore its outcome was illegal, said one of the two people.
Mistry wrote a letter to TGBL’s company secretary on Tuesday evening saying the move to remove him had been illegal. However, sources close to Mistry ruled out any legal action as yet against the company. Shroff is expected to establish, if needed, that due process was followed in Mistry’s removal.
Shroff, managing partner of Cyril Amarchand Mangaldas, is among India’s top corporate lawyers. “There is a likelihood that this could go to the NCLT (National Company Law Tribunal),” said the second person.
The Tata group, backed by a battery of lawyers including Abhishek Singhvi and Harish Salve, has filed caveats in several courts. This preempts any order being issued by the courts without hearing the Tata side.
On October 24, Mistry was ousted from the Tata Sons board as its chairman, marking the end of his control over the diversified conglomerate. The Mistry family’s Shapoorji Pallonji group owns 18.4% of Tata Sons and is putting up a fight over his removal from individual company boards within the Tata group.