Tata Sons rejected a settlement offer from minority shareholder Shapoorji Pallonji group terming it as 'nonsense' on Thursday because the relief sought as a matter of right seemed like restructuring the company.
Senior advocate Harish N Salve argued for the company before a three-judge bench which was led by Chief Justice of India SA Bobde, “Cut to the chase. They are seeking to have the assets of Tata Sons divided so that they can get an 18% share in all Tata companies.”
Opening his argument, the SP Group's lawyer said that they only sought transparent functioning and also the Tata trustees should not run board-operated companies.
The bench of the apex court was hearing appeals and cross-appeals field by the Tatas and the Mistry family of the SP Group that were challenging the decision of the National Company Law Appellate Tribunal's decision came in December 2019 in which the ruling reinstated Mistry as executive chairman. The Supreme Court has put a stay on the NCLAT's order.
Salve argued, “Such an application was terrible at this stage,” Salve. He said the Tatas can buy the Mistry family’s stake at a fair value, but what they are asking for is the winding up of Tata Sons. They are also asking for a share of the Tata brand value, Salve said as he concluded his arguments against the NCLAT order.
In October 2016, Mistry was removed from the post of executive chairman by the board. Now, four years later, the SP Group is seeking separation from the holding company of the Tata Group and in October they said that they are ready to swap their 18.4 per cent stake in Tata Sons. The amount values Rs 1.75 lakh crore.
