Mehli Mistry fights his Tata Trusts trustee removal in court
What's the story
Mehli Mistry, a long-time associate of Ratan Tata, has filed a caveat with the Maharashtra Charity Commissioner. The move is in response to his removal as a trustee from three key organizations: the Sir Ratan Tata Trust, Sir Dorabji Tata Trust and Bai Hirabai Jamsetji Navsari Charitable Institution. The caveat seeks to ensure that Mistry is heard before any decision regarding changes in trusteeship is made by the Charity Commissioner.
Legal strategy
Legal perspective on caveat
Senior Supreme Court advocate H.P. Ranina explained to The Times of India that a caveat serves as a protective measure, ensuring that the authority hears the petitioner's arguments before passing any order. In this case, it prevents the Charity Commissioner from approving Mistry's removal without first hearing his defense. Under Tata Trusts's rules, unanimous consent from all trustees is needed for reappointment decisions.
Reappointment controversy
Details on Mistry's removal
Mistry had joined the boards in October 2022 for a three-year term ending October 28 this year. He was due for reappointment as a permanent trustee. On October 23, a circular was sent seeking trustees' approval for his continuation. While some trustees supported this move, others opposed it. The lack of unanimity resulted in Mistry's trusteeship not being renewed.
Future implications
Potential legal ramifications for Tata Trusts, Tata Sons
Mistry's argument before the Charity Commissioner is likely to be based on a resolution passed on October 17, 2024, where all trustees had agreed to be reappointed as permanent members upon their current terms' expiration. If the matter remains unresolved, it could lead to a protracted legal battle with far-reaching consequences for Tata Trusts and Tata Sons. Under Tata Sons's articles of association, certain key decisions require prior consent from Tata Trusts.