Shapoorji Pallonji Group has staked claim in all Tata Sons’ assets and has sought a division. Do you think that it will be as easy as it is seeming in the press release sent by the SP Group?
Obviously it is not going to be easy at all but what they are saying is that since this Tata Sons holds shares in many listed companies, they want 18.5% of those shares of each of those listed companies and since the value is determined by the market every day, you can easily arrive at a fair figure of what the 18.5% of the capitalised value of each company is and arrive at a valuation. They said it is only for unlisted companies that you get an independent valuer’s report. But for listed shares, since the value is known every day, take the average of that value and give the 18.5% of the value of each of those listed companies, that is how the Shapoorji Pallonji Group has argued.
Now whether the Supreme Court accepts that argument remains to be seen. Tatas will obviously respond to it in the next few days and we will see what the Tatas have to say as far as this proposal is concerned.
What happens to all the other cases? Even after the separation request, all the other cases and all the allegations remain. So if there has to be a settlement, it has to be a full and complete settlement not only separation.
Yes I agree with you. This is only a question of separation, but if Shapoorji Pallonji Group gets what it wants in terms of the valuation, then they will agree to withdraw all the other allegations which have been made. I am sure that will be an important aspect of the settlement. So once the settlement takes place it will have to be manifold and it will be all embracing and you cannot just have a separation and allow all those allegations and counter allegations to survive. Everything will have to be sorted out and they will have to file a consent term in the Supreme Court once all the loose ends are tied up and then only the Supreme Court will entertain this.
Now whether the Supreme Court is going to monitor this type of settlement is very doubtful. In the past, they have not done that. They have appointed mediators. They would be most reluctant to monitor it because this is not something like investigation. They will leave it to two parties to come to a settlement and if they come to a settlement, obviously the consent terms will have to be filled and when the settlement comes, it will have to be an overall overarching settlement which covers every single point of contention with no loose ends left untied.
What is your take here? Can the court give a go ahead or can the SP group pressurise Tata Sons to buy the stake because there Mr Harish Salve has only once talked about buying the SP Group stake?
Obviously you cannot pressurise Tata Group at all. It is only a proposal. Even the court will not interfere. They will say you sort it out between yourselves. If you want to, we will revise the deal with the petition as has been filed by the two parties and deal with questions of law. A settlement has nothing to do with the issues which have been raised in the petitions which have been filed against the order of NCLT. This Supreme Court matter is against the order of the National Company Law Appellate Tribunal.
Since this issue of settlement is a totally extraneous issue which has been brought up for the first time, the Supreme Court is not concerned with it. The Supreme Court only deals with questions of law and if there is a settlement well, that is okay they will let them settle and file a consent and let them withdraw all the petitions that they have filed in the Supreme Court. This is the only way to do it.
You cannot talk about settlement once all your petitions are pending in the court. This is not something which the court will really entertain and the comment which Mr Salve made on behalf of whoever it is, is just off the cuff, it has nothing to do with the legal issue that arises before the Supreme Court.