Tata Trusts, the largest shareholder with a 66 per cent stake in Tata Sons, is preparing for a court battle, if required, to challenge the resolution on reappointment of N Chandrasekaran as executive chairman of the Tata group holding company for another five years once his current term ends in February 2027. 

Sources said Tata Trusts is weighing multiple legal options.   Senior Supreme Court advocate Abhishek Manu Singhvi, in a social media post on Sunday, said he had entered the fray on the Tata dispute, indicating that a legal process may be fast-tracked.         

While exploring legal options, Tata Trusts continues to argue its case out of court. In a statement on Sunday, it reiterated that the resolution on Chandrasekaran’s reappointment lacked validity.

The Trusts said that the Articles of Association (AoA) of Tata Sons do not leave any decision of the board to a mere head count of directors. “They provide that no decision can be taken unless it has the affirmative support of at least a majority of the directors nominated by Tata Trusts.” Calling it “void ab initio” in the eye of the law, Trusts gave its explanation on the matter.

AoA are not a convenience to be relied upon when they help and ignored when they don’t, the Trusts said, citing the Ratan Tata-Cyrus Mistry case in the Supreme Court. “Tata Sons is not at liberty to take this position, because it has already taken the opposite one and won in the Supreme Court. In the proceedings arising out of the removal of Cyrus Mistry, the affirmative voting rights of the Trusts’ nominee directors under Articles 104B and 121 were squarely in issue.’’