Tata's rival camps line up top lawyers ahead of looming legal battle
Both sides are being advised by lawyers who have represented India's biggest companies, and have also recently hired senior counsel who are among the country's top litigators
Senior attorneys Harish Salve and Abhishek Manu Singhvi have warned that the ongoing struggle between Tata Sons and Tata Trusts could escalate from the boardroom to a courtroom. Salve, who may represent Tata Sons, anticipates the dispute will reach legal proceedings, while Singhvi, selected by Tata Trusts, emphasizes that shareholders' fundamental rights "cannot be nullified in the manner they have been."
At a recent board meeting, Tata Sons opted to grant chairman N Chandrasekaran a five-year term following his announcement in August that he would not seek another term. However, Tata Trusts, which controls approximately 66% of Tata Sons, voted against the decision. Among the Trusts' nominees, Venu Srinivasan voted in favor, while Noel Tata, Chairman of Tata Trusts, opposed it.
Salve, a former Solicitor General of India, recently spoke with ANI from London regarding a potential public listing of Tata Sons. He underscored the Tata Group's stature as India's largest corporate entity and its role as a global institution. He highlighted the group's assets acquired from the government, involvement in defense work, and plans for hydrogen projects, emphasizing that a global corporation requires fresh talent and transparency to thrive.
Singhvi, a Rajya Sabha member who previously represented Tata Sons against Cyrus Mistry in 2021, has now taken on the role of lead lawyer for Tata Trusts in the current dispute. He expressed regret over the inability to resolve the issues amicably, citing his prior collaboration with Ratan Tata. Singhvi maintains that the 2021 Supreme Court decision in the Tata-Mistry case gave the Trusts primacy in their relationship with Tata Sons and upheld the special Articles.
He argued that unanimous voting and veto provisions have been applied for generations, and that a century-long relationship should not be disrupted. Singhvi stressed that without mutual cooperation, legal intervention would be necessary to resolve the conflict. Tata Trusts responded by declaring the September 17 resolution invalid, asserting that Article 121 of Tata Sons' Articles of Association necessitates an affirmative vote from the majority of Trust-nominated directors, with a casting vote only in the event of an equal board vote.
Written by urgent.news from The Indian Express's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
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- Harish Salve, Abhishek Manu Singhvi weigh in on Tata boardroom battle indianexpress.com
