A day after the Tata Sons board sacked Cyrus Mistry and named 78-year-old Ratan Tata as interim chairman, the Tatas filed caveats to pre-empt Mr. Mistry from obtaining any ex-parte relief against his abrupt ouster. Mr. Mistry, for his part, laid the onus on the Tatas and signalled he was yet to decide on his next course of action.
“Tatas have filed caveats seeking notice from Cyrus Mistry fearing legal action,” a statement from the office of the Pallonji Mistry family scion said. “Cyrus has not filed any caveats. He has already made a statement that such concerns are misplaced at this stage.”
A courtroom battle could be protracted and potentially damaging for the reputation of the Tatas, analysts said.
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“Cyrus is calm, weighing his options and should drag Tata Sons to the court for his removal without giving any reasons,” said Anil Singhvi of Ican Investments Advisors. “How can the Tata Sons board with 3 members who are just three months old evaluate the performance of Cyrus, who has been there for four years? Cyrus must defend his reputation. He would not have done anything to marginalise his holdings,” Mr. Singhvi said.
Tata Sons, the Dorabjee Tata Trust, and Ratan Tata have filed separate caveats against Cyrus Investment Private Limited and others, and Cyrus Mistry at the National Company Law Tribunal, the Bombay High Court and the Supreme Court.
Abhishek Manu Singhvi, retained as senior counsel by the Tatas, said the caveats were only a routine step. “Filing of caveats is a normal early warning practice and never to be misread as an aggressive initiative,” he said. “This is a sad moment for everyone involved. Mr. Ratan Tata is known and respected for his sobriety and is known to do everything for the improvement of the supreme interest of the Tata Group. Statesmanship can always diffuse issues. But in the ultimate analysis, courts are always there to resolve the unsolvable.”
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