Tata Sons on Tuesday served a legal notice to ousted Tata group chairman Cyrus Mistry and his family controlled 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.
Although the office of Mistry did not comment, sources close to the former Tata chairman confirmed receipt of the notice.
“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…” said 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.
The NCLT had denied interim relief for the petition filed on behalf of Mistry and has 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 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,” said the notice. “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.