Tata Group dubs SP Group's share-swap offer for separation as "nonsense"

Описание: Tata Group has opposed SP Group's offer to separate through pro-rata distribution of all shares and assets of the Tata Group. Appearing for Tata Group, senior lawyer Harish Salve termed the share-swap separation offer as "nonsense". He questioned if Cyrus Mistry can be rewarded for seeking an 18% share in brand value for damaging the "Tata brand". The Supreme Court will continue hearing on arguments from Cyrus Mistry and the SP Group on December 14.


Tata Group questioned how Mistry can seek an 18% stake in brand value for damaging the "Tata Brand", urging the top court to allow it to buy Mistry's minority stake at fair market value. Tata Group submitted that SP Group's offer for restructuring will amount to winding up of Tata Sons


CJI Justice Bobde asked SP Group to define "oppression", and specify which extent of oppression will justify winding up of Tata Sons. Cyrus Investments has been asked to clarify if they ever lost money without Tata Group losing money and whether the company's trustees were overruled and their decisions didn't reach the company's board. The court made it clear that Mistry had come to court alleging oppression by Tata Sons; not by TCS or Tata Teleservices. Hence, any relief to Mistry can't be outside the confines of Tata Sons.


CJI observed that Mistry's resentment is to Ratan Tata's participation in the company's affairs stemmed from the fact that he was asking board members to discuss things in advance before any decisions were taken. CJI asked Tata Sons to explain Ratan Tata's intervention in areas Mistry claimed he didn't have any authority.


Appearing for Cyrus Investments, senior lawyer Aryama Sundaram submitted that mere profits of a company can't be criteria to decide on oppression, which may result from lack of confidence on the basis of personal equations. He questioned Mistry's removal just 3 months after he was complimented and given a higher remuneration.

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