MUMBAI: Dec 21, 2016, DHNS:
An unfazed Tata Sons suggested it was ready for a long-drawn courtroom battle. On October 24, Tata Sons, the holding company of Tata Group, had removed the 48-year-old Mistry from the position of chairman of the over $100 billion salt-to-software conglomerate.
The same day, Ratan Tata, 78, took over as interim chairman. Mistry was then systematically removed from Tata companies. Mistry represents Shapoorji Pallonji Group, the largest shareholder in Tata Sons. His family-controlled investment firms on Tuesday moved the Company Law Tribunal against Tata Sons. The first hearing is expected on December 22.
‘Will contest allegations’
“We understand that the petition has been filed by investment companies of Cyrus
Mistry. Tata Sons is in consultation with its lawyers and will contest the allegations therein,” a Tata Sons spokesperson said.
Targeting the ousted chairman once again, the statement said: “Mistry was the Chairman of Tata Sons for almost 4 years and it is surprising that he is now making allegations on activities of Tata Sons after doing little to address them, in his tenure both as a Director (since 2006) and a Chairman since 2012.” Defending his sacking, the spokesperson said it had been approved by an overwhelming majority of directors.
On Monday, after resigning from the boards of half a dozen Tata companies, Mistry said: “I had initially not thought that one would need to seek an external forum to adjudicate issues that should never have arisen in the first place… I reinforce my consistent position that this is not a fight for a position but a fight to more effectively secure long term reform to keep the Tata group on a sustainable path.”