Highlights:
Mistry family said it believes that a separation of interests would best serve all stakeholder groups
SC on Tuesday restrained SP Group and Cyrus Mistry till 28 Oct from pledging or transferring their shares in Tata Sons
Shapoorji Pallonji Group on Tuesday said it’s time to exit from Tata Sons after a relationship that spanned 70 years turned sour in the last few years.
“The Shapoorji Pallonji-Tata relationship spanning over 70 years, was forged on mutual trust, good faith, and friendship,” the company said in a statement.
It also blamed Tata Sons and said it has amplified its institutional efforts to suppress and inflict irreparable harm on the SP Group, in the midst of a global crisis triggered by the COVID pandemic, when the Mistry family were in the midst of raising funds against the security of their personal assets to meet the crisis.
“This move was undertaken to protect the livelihoods of its 60,000 employees and over 100,000 migrant workers. The action by Tata Sons to block this crucial fundraiser, without any heed for the collateral consequences is the latest demonstration of their vindictive mindset,” it added.
“It is crucial that an early resolution is reached to arrive at a fair and equitable solution reflecting the value of the underlying tangible and intangible assets,” the statement by the SP group said.
“The SP-Tata relationship spanning over 70 years was forged on mutual trust, good faith, and friendship. Today, it is with a heavy heart that the Mistry family believes that a separation of interests would best serve all stakeholder groups,” it said.
The latest legal dispute is a challenge by the Tatas to the Shapoorji Pallonji Group’s right to pledge Tata Sons shares to raise funds. According to the Tatas, the SP Group has already pledged shares held by Cyrus Investment amounting to 9.19 per cent of Tata Sons with Axis Trustee Services and with IDBI Trustee Services.
SC has restrained Shapoorji Pallonji and Cyrus Mistry from pledging or transferring their shares in Tata Sons till Oct 28. The court also directed Tata Sons and SP Group not to take any action on the shares already pledged.
