Ratan Tata and Cyrus Mistry
Even as the legal spat between Tata Sons
and ousted chairman Cyrus Mistry show no signs of a thaw and in all likelihood only escalation, V R Mehta, a trustee at Sir Dorabji Tata Trust, said the two sides could have settled the issues amicably had the Mistry camp not worked against the interest of the Tata group.
In a major drubbing for Mistry and his investment firms, the National Company Law Tribunal’s Mumbai bench on Monday ruled in favour of Tata Sons, dismissing Mistry and his investment firms’ petition. The Mistry camp plans to move the National Company Appellate Tribunal.
“In any given situation, there is always a scope of rethinking but in this case one can’t think that way because of the way the other party (Mistry camp) has behaved,” Mehta told Business Standard, pointing out that with Mistry having already stated he is going to appeal against the order, there is no end to the fight. “Don’t think any solution is possible till the house is put in order,” said a source at the Mistry camp in response to whether there is scope for reconciliation. Mistry was removed as chairman of Tata Sons
on October 24, 2016, after the Tata Sons
board ‘lost confidence’ in him.
In a 10-page missive to Tata Sons board a day later, the ousted chairman alleged that he wasn’t given a free hand in running the company and his status was reduced to a “lame duck” chairman in the company. He also highlighted the “legacy hot spots” and a potential write-off the group faces.
Mehta said Mistry’s actions since his removal has been in contrast to his words. “While he has been talking of protecting the interests of the Tata group, he has been doing everything possible to harm it—right from issuing the ten-page statement the very next day after he was removed, to making disclosure of privileged information including the group’s write-offs,” he said.