Companies

Supreme Court to hear Tata Sons’ plea seeking to restrain Mistry family from raising funds on Tuesday

Rajesh Kurup Mumbai | Updated on September 21, 2020 Published on September 21, 2020

A photo of Bombay House, corporate office of Tata Sons in Mumbai.

The Supreme Court will hear Tata Sons’ petition seeking to restrain the Mistry family from raising capital against the shares it holds in the firm on Tuesday.

The apex court has listed the matter on September 22 for appropriate orders and directions.

Earlier on September 5, Tata Sons had moved the apex court, seeking to restrain Shapoorji Pallonji Group (SP Group) from pledging the shares it held in Tata Sons, the holding company of the salt-to-software Tata Group.

The SP Group, which owns 18.37 per cent stake in Tata Sons, had termed this move as “vindictive” and “intended to inflict irreparable damage on the SP Group”.

READ THE STORY: SP Group questions Tata board move to block Mistry family from raising funds

In a notice to Tata Sons’ directors, SP Group has given three days’ time to respond, failing which it will seek appropriate remedies, including a claim for damages.

It has sought an explanation from the board members, particularly independent directors, on whether the “oppressive action that causes prejudice” to a minority shareholder was with their concurrence. The notice was sent individually and collectively to all directors.

On its part, Tata group denied all allegations raised by SP Group as “lacking any merit” and said it was surprised to receive a notice in a case pending before the Supreme Court.

READ THE STORY: Tatas denies allegations, surprised to receive SP Group notice

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Published on September 21, 2020
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