Mehli Mistry Challenges Removal from Tata Trusts with Caveat, Referencing Previous Resolution
Mehli Mistry, the executor of Ratan Tata’s will, has taken legal action following the denial of his reappointment to the boards of Tata Trusts. He filed a caveat with the charity commissioner in Mumbai, seeking a chance to present his case before any decisions regarding changes to the board are made. This move comes after a majority of trustees voted against his continuation, highlighting ongoing tensions within the organization.
Legal Action Filed
On Saturday, Mehli Mistry filed a caveat with the charity commissioner in Mumbai, requesting to be heard before any changes to the Tata Trusts board are approved. This legal step is crucial for Mistry, as it ensures he will be notified of any proceedings and can participate in hearings related to the matter. Mistry’s caveat was also sent to all trustees of the Sir Dorabji Tata Trust, Sir Ratan Tata Trust, and Bai Hirabai Jamsetji Navsari Charitable Institution, including chairman Noel Tata, who is related to Mistry. The charity commissioner serves as the first judicial forum for grievances related to public charities, making this a significant development in the ongoing dispute.
Trustees’ Decision and Voting Dynamics
The reappointment of a trustee at Tata Trusts requires unanimous consent from all board members. Mistry was initially appointed by Ratan Tata in October 2022 for a three-year term, which is set to expire on October 28, 2025. However, on October 23, a circular was circulated among trustees seeking consent for his reappointment as a permanent trustee. The vote resulted in a split decision, with Noel Tata and vice chairmen Venu Srinivasan and Vijay Singh opposing Mistry’s continuation, while three other trustees supported it. Ratan Tata’s brother, Jimmy Tata, abstained from the vote, leading to a lack of unanimity and ultimately resulting in Mistry’s trusteeship not being renewed.
Implications of the October 17 Resolution
Mistry’s legal team plans to argue before the charity commissioner that a resolution passed on October 17, 2024, which stated that all trustees would be reappointed as permanent trustees upon the expiration of their current terms, should be binding. Senior Supreme Court advocate HP Ranina emphasized that any resolution made by the Trusts is enforceable under the Maharashtra Public Trusts Act and the Trusts’ deeds. If the Trusts wish to revoke this resolution, they must convene a meeting and achieve unanimous consent from all trustees to do so. This situation raises questions about the procedural integrity of the vote that rejected Mistry’s reappointment.
Charity Commissioner’s Role and Future Proceedings
The charity commissioner has a limited jurisdiction, primarily focused on the genuineness of the proceedings rather than the wisdom of the decisions made by the Trusts. Senior counsel Shekhar Naphade noted that while the commissioner can intervene in cases of deadlock or alleged mismanagement, the Trusts generally have the right to manage their own affairs according to their trust deeds. The failure to renew Mistry’s trusteeship constitutes a change in the board’s composition, which must be reported to the charity commissioner within 90 days. This requirement underscores the importance of adhering to legal protocols in the governance of public charities. As the situation unfolds, both Mistry and Tata Trusts will present their arguments, shaping the future of the Trusts’ leadership.
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