Monday, October 31st, 2016

Tata Vs Mistry: Top lawyers fly to Delhi

R Venkataraman | October 31, 2016 11:54 am Print
Already the grapevine has it that similar caveats could be filed in the Bombay High Court also, as the Mistry family has shares in the main holding company ‘Tata Sons’.
A file photo of Cyrus Mistry and Ratan Tata.

The mystery shrouding the exit or expulsion of Cyrus Mistry has deepened. Three lawyers who are said to have flown into the Indian Capital on the Deepawali evening are likely to file ‘caveats’ at the High Court of Delhi at New Delhi.   The Caveat means “don’t decide without hearing me”. “This could be from either side,” said a source not wanting to be named.

It means the ‘caveats’ could be filed from both the sides.

Already the grapevine has it that similar caveats could be filed in the Bombay High Court also, as the Mistry family has shares in the main holding company ‘Tata Sons’.  This new development is sequel to the war between the two ‘pariwars’ (families) with the ouster of Cyrus Shapoorji Mistry, whose grand father Shapoorji Mistry initially bought some shares in Tata Sons, the main holding company and went on to become a sizable shareholder in 1936.

A list of dates and events too have reportedly been prepared, according to which, the Tata Sons, as a company, was formed in 1868. The rest is history.

Legal battles apart, in the corporate war, it may be an uphill task for the Tatas now to oust the Mistrys, as the latter has about 18.5 % shares, buying or selling this much in any market could be difficult as the listed companies of the Tatas alone are said to have been worth about Rs. 8.3 lakh cores (close to $ 125 billion). There are said to be 30 listed and hundreds of unlisted companies of the Tata Group out of which the Mistry family may be worth about $ 23 billions. So, to oust the Mistrys totally, would be difficult, unless Ratan Tata comes out as a Knight in the shining armour.  ‘Jio’ may be born but ‘maro’ may certainly come and this is Corporate India.

R Venkataraman
R Venkataraman
(The writer is ex-accredited correspondent of Supreme Court of India, Parliament of India, Central Government (PIB) and ex-member Press Council of India.)
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