As predicted by Indianmandarins in its report on Tuesday, the bitter boardroom battle that led to the ouster of Cyrus Mistry as the Chairman of Tata Sons may shortly become a full-blown courtroom war, with both sides gearing up for a legal showdown. Mistry’s position within the group was further curtailed on Tuesday after he was asked to step down as Chairman of several group companies, including Tata Motors, TCS and Tata Steel.
While Tata Sons has filed a caveat in the Bombay High Court pre-empting any legal action by Mistry, Mistry played his cards close to his chest. A statement issued by his office said: “A caveat is a notice filed by a party fearing legal action seeking notice before action. Tatas have filed caveats seeking notice from Cyrus Mistry fearing legal action. Cyrus has not filed any caveats.”
Sources close to both camps said that a battery of lawyers has been hired by both Tata Sons and Mistry in preparation for the upcoming battle. Sources said Mistry could approach both the Bombay High Court and the Company Law Board to challenge the board’s decision to ease him out.