Cyrus Mistry denies reports of filing preventive notice against Tatas as company prepares for court
The conglomerate filed caveats with the Supreme Court, Bombay High Court and National Company Law Tribunal.
Cyrus Mistry's office on Tuesday denied reports that the ousted Tata Sons chairman had filed four caveats in various courts against Ratan Tata, the Tata Group and Tata Trusts. "Cyrus has not filed any caveats. He has already made a statement that such concerns are misplaced at this stage," the statement said, also confirming that the Tatas had filed caveats seeking a notice from Mistry "fearing legal action" against their move to dismiss him from the post after four years.
A caveat is a preventive measure that disallows courts from hearing matters without both parties being notified about them first. Mistry had initially dismissed speculation about suing the company for replacing him, according to The Economic Times.
Earlier reports said that Mistry had filed petitions with the Supreme Court, Sir Dorabji Trust and National Company Law Tribunal. The Tata Group, however, did file caveats to deter courts from issuing any ex-parte order against it with regard to Mistry's ouster, The Economic Times reported. The conglomerate filed the caveats with the Supreme Court, Bombay High Court and National Company Law Tribunal.
Ratan Tata was named interim chairman of Tata Sons on Monday, after the company's board announced that it had decided to replace Mistry as the chairperson. Mistry was appointed to the post in 2011 on the basis of his representation from Shapoorji Palonji, the largest shareholder in Tata Sons.
Rumours about a rift between Mistry and the group surfaced after the company dismissed Tata veteran Raymond Bickson from Indian Hotels, according to The Economic Times. There were also allegations of a conflict of interest when Shapoorji Palonji was awarded contracts after Mistry was appointed chairperson.
In a statement issued on Tuesday, Ratan Tata said he had accepted the role of interim chairperson to "fill the vacuum and ensure stability". His statement called on Tata companies to "act as leaders in their respective markets and enhance returns to shareholders." He urged the conglomerate's companies to prioritise "market position vis-à-vis competition and not compare themselves to their own past."
Moreover, CEO of Jaguar Land Rover Dr Ralf Speth and CEO and Managing Director of Tata Consultancy Services N Chandrasekaran were on Tuesday appointed additional directors on the board of Tata Sons. "This is in recognition of their exemplary leadership in their companies," Ratan Tata said.
Tata stocks declined on Tuesday following news of Mistry's replacement.