TATAS SUE MISTRY FOR BREACH OF CONFIDENTIALITY
MUMBAI: Tata Sons sent a legal notice on Tuesday to ousted Tata group chairman Cyrus Mistry and family investment companies for alleged breach of confidentiality for “making public” sensitive corporate documents.
The notice alleged that the former chairman’s actions were equivalent of a criminal breach of trust.
The office of Mistry did not formally respond, but sources close to him said an appropriate reply has been sent.
Mistry had moved the National Company Law Tribunal through his investment companies, alleging oppression and mismanagement by Tata Sons. He did that after stepping down from the boards of the group’s listed companies ahead of crucial meetings that we reconvened to vote him out.
The investment companies of the Shapoorji Pallonji family, to which Mistry belongs, had filed the petition. The tribunal denied interim relief and scheduled the next hearing for January.
MUMBAI: Tata Sons on Tuesday served a legal notice on ousted Tata Group chairman Cyrus Mistry and family investment companies for alleged breach of confidentiality in making public, sensitive corporate documents, and sought immediate action to address the issue.
The notice issued by Shardul Amarchand Mangaldas has asked Mistry and the investment companies, Cyrus Investment and Sterling Investment, to stop using the confidential documents in a petition they had filed earlier with the National Company Law Tribunal (NCLT).
Although Mistry’s office did not formally respond, sources close to him said they were fully compliant with all legal requirements .“An appropriate response has been sent. Only those afraid of the facts would seek to suppress facts,” they added.
“The petitioners (Cyrus Investment and Sterling) have deliberately included in the petition… confidential data, business strategies, financial information pertaining to the business affairs of Tata Sons, Tata Group companies and joint ventures… while acting through the petitioners, you (Mistry) acted in complete breach of all legal duties and obligations…” according to the notice.
The investment companies of the Shapoorji Pallonji family, to which Mistry belongs, had filed the petition with the Tribunal, alleging oppression and mismanagement by Tata Sons. Mistry led the move to petition the Tribunal following his decision on October 19 to step down from the boards of all listed companies of the group.
The NCLT denied interim relief for the petition filed on behalf of Mistry, and scheduled the next hearing for January.
Advocates representing the ousted chairman said Mistry was targeted and removed as he wanted to investigate malpractices within the Tata Group, in line with the charges he has been making, specially those related to violation of governance norms and in awarding of contracts in specific group companies.
In the notice, Tata Sons, through its advocates, said that by passing on sensitive information in the petition, which would appear in the public domain, the Tata Group is now exposed to “potential claims from third parties…Our client has every intention to make you liable for such claims. “Such reckless failure on your part in discharging your fiduciary, legal and contractual duties has caused irreparable harm and damage to Tata Sons and the Tata Group,” it added.