Mehli Mistry's Reappointment on Tata Trusts Board: A Legal Battle Ahead

Tata Trusts is embroiled in a dispute over the reappointment of Mehli Mistry, executor of Ratan Tata's will, to its board of trustees. The Trusts had notified the charity commissioner of a change in the board composition, citing the rejection of Mistry's reappointment by a majority decision. However, Mistry has filed a caveat with the charity commissioner, requesting an opportunity to be heard before any decision on the change in the board is made. This move sets the stage for a legal battle, with Mistry's lawyers arguing that the Trusts' actions are in contravention of the law and their fiduciary duties.

Key Takeaways:

• Mehli Mistry, executor of Ratan Tata's will, has filed a caveat with the charity commissioner to prevent a change in the board composition of Tata Trusts without his submissions.
• The Trusts had circulated a circular seeking trustees' consent on Mistry's reappointment as a permanent trustee, but it was denied by Noel Tata and two other trustees, with three others favoring his reappointment.
• The Trusts have to file a report with the charity commissioner on the changes within 90 days, but Mistry's caveat notice to the charity commissioner and all the trustees will ensure that his interest is protected.
• The charity commissioner will hear both parties' arguments before making a decision.
• Senior Supreme Court advocate HP Ranina explained that a caveat is a notice not to sanction a change in the board of trustees without Mistry's submissions, giving him an opportunity to participate in hearings before any order is passed.

Statistics:

• 90 days: The time frame within which the Trusts have to file a report with the charity commissioner on the changes.
• 15 working days: The provisional acceptance by the deputy or assistant charity commissioner of a Change Report.
• 30 days: The period within which a notice is issued inviting objections to the change in the board composition.
• 4: The number of trustees who favored Mistry's reappointment.

Sources:

• TOI (The Times of India)
• Maharashtra Public Trusts Act
• The Trusts' deeds
• The Charity Commissioner's rules