Fearing a legal challenge from Mistry, the Tatas have filed caveats in the Supreme Court (SC), Bombay High Court (HC) and National Company Law Tribunal to prevent him from getting an ex-parte order against his sacking.
The high-voltage boardroom tussle at Bombay House that saw the ouster of chairman Cyrus Mistry on Monday is now spilling over to the courtrooms.
Fearing a legal challenge from Mistry, the Tatas have filed caveats in the Supreme Court (SC), Bombay High Court (HC) and National Company Law Tribunal to prevent him from getting an ex-parte order against his sacking.
A caveat is filed in a court as a preventive measure to ensure that the court does not issue an ex-parte order, and hear the matter without allowing the other side to appear. Mistry's office, however, denied speculation over counter-caveats.
His family-owned Shapoorji Pallonji group, which also owns an 18.4 per cent stake in Tata Sons, said on Tuesday that reports about Mistry taking Tatas to court was baseless "at this stage".
"The Tatas have filed caveats, seeking notice from Mistry. He has not filed any caveats. He has already made a statement that such concerns are misplaced at this stage," said the statement from Mistry's office.
However, legallyindia.com reported that Desai & Diwanji partner Apurva Diwanji is acting for Mistry, briefing Senior Counsel Iqbal Chagla and Janak Dwarkadas as well as Somasekhar Sundaresan, former J Sagar Associates (JSA) partner, and now an independent counsel.
Speculation was rife that Mistry may move court in a day or two. It also reported that two law firms -- Karanjawala & Co and Shardul Amarchand Mangaldas Mumbai partner Shuva Mandal, who had joined the firm from AZB & Partners -- had been instructed by Tata Sons to advise it on the matter, including filing of caveats.
Meanwhile, Tata Group announced an expansion of the Tata Sons board with the appointment of Dr Ralf Speth, CEO of JLR, and N Chandrasekaran, CEO & MD of Tata Consultancy Services (TCS), as Additional Directors.
Commenting on their appointment, Ratan Tata said: "This is in recognition of their exemplary leadership in their companies." Legal sources said Mistry could have asked the courts to stay further appointment of directors or changes in the management. However, now that the Tatas have filed caveats, the courts cannot take up any such demand without listening to Tata's arguments.
On Tuesday, key Tata group companies lost nearly Rs 10,700 crore in combined market capitalisation even as the interim Chairman tried to calm frayed nerves through a letter to employees. Shares of Tata Steel fell 2.51 per cent and Tata Power 1.5 per cent on the BSE. TCS shares slipped 1.2 per cent and Tata Motors went down 1.07 per cent.
Ratan Tata, in the letter to employees, talked of his role about providing "stability and reassurance to the Tata Group" till a new leader is selected. He also met group CEOs at Bombay House and assured all of a stable environment. He said that group companies will see continuity in their strategies and assured them that Mistry's exit is not a cause of concern for the group. Tata assured CEOs that the long-term interests of the group would get priority.
"The companies must focus on their market position vis-à-vis competition, and not compare themselves to their own past," Tata said.
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