Tata Sons row: Mehli Mistry objects to trust funds paying legal costs

A trustee of the Tata Education and Development Trust (TEDT) has objected to the use of trust funds to meet legal expenses arising from the ongoing dispute between Tata Trusts and Tata Sons, reported news agency ANI.

Mehli Mistry, a trustee of TEDT, raised the objection in an email to Siddhartha Sharma, CEO of Tata Trusts. The communication was also copied to Tata Trusts Chairman Noel Tata and fellow TEDT trustee JN Mistry.

Mistry said TEDT should remain separate from the legal dispute surrounding Tata Sons and N Chandrasekaran’s reappointment as chairman.

"I am saddened to read about the litigation between Trustees, Tata Sons and Tata Trusts. This has been unprecedented over the past 150 years!" Mistry wrote in the email, according to ANI.

He also made clear that TEDT should not be made responsible for the legal costs arising from the dispute.

"While I do not want to comment on the experience and attitude of people, I want to make it abundantly clear that TEDT will not pay any part of legal expenses towards these created disputes. TEDT is not a Tata Sons shareholder, and therefore, in that respect, stands isolated from these disputes," Mistry said, according to ANI.

Mistry has asked for his written objection to be formally tabled and recorded at the next meeting of the TEDT Board of Trustees, scheduled for November 20, 2026.

It is not clear from the email whether any TEDT funds have already been used for legal expenses or whether the trust has actually been asked to make such a payment. The objection relates to the possibility of the educational trust being called upon to meet costs arising from the legal dispute.LEGAL BATTLE OVER CHANDRASEKARAN'S REAPPOINTMENT

The funding dispute comes against the backdrop of an escalating disagreement between Tata Trusts and Tata Sons over Chandrasekaran's reappointment.

Chandrasekaran had informed the Tata Sons board on August 12 that he would not seek an extension when his existing term ends on February 20, 2027. The Sir Dorabji Tata Trust subsequently resolved to establish a selection committee under the company's Articles of Association to identify a successor, according to the report.

However, at the September 17 Tata Sons board meeting, the board voted 4:1 to extend Chandrasekaran's tenure for another five years. Noel Tata was the sole director to vote against the proposal.

Tata Trusts has challenged the validity of that decision, arguing that the required affirmative support from its nominee directors under Tata Sons' Articles of Association was not obtained. The Trusts have described the reappointment as a "legal nullity" and "void ab initio".

The Trusts collectively hold nearly 66% of Tata Sons.SINGHVI, SALVE ON OPPOSITE SIDES

The dispute has also brought prominent lawyers into opposing camps.

Senior Advocate Abhishek Manu Singhvi is representing Tata Trusts, while Senior Advocate Harish Salve is advising Tata Sons Chairman N Chandrasekaran, according to the report.

The legal dispute centres on questions including the validity of Chandrasekaran's reappointment, the rights of Tata Trusts' nominee directors and the interpretation of Tata Sons' Articles of Association.

The potential cost of the legal fight has also brought attention to the earlier litigation involving former Tata Sons chairman Cyrus Mistry.

According to the report, Tata Sons and Tata Trusts together spent around Rs 200 crore on legal fees during that dispute, while the Mistry camp spent around Rs 50 crore. These figures are therefore based on media reports and are not independently established in the material provided.

Mehli Mistry is also described in the report as a first cousin of the late Cyrus Mistry and a former trustee of the Sir Ratan Tata Trust and Sir Dorabji Tata Trust.

The latest objection therefore adds a financial dimension to the widening Tata Sons dispute, with questions now emerging not only over the legal positions of the two sides but also over which trusts or entities should bear the cost of any prolonged litigation.- EndsPublished By: Sonu VivekPublished On: Sep 21, 2026 16:53 IST