Shapoorji Pallonji Group, which is one of Tata Sons largest shareholders with family ties to outgoing chairman Cyrus Mistry, has quashed media reports about a possible lawsuit challenging board decision that led to Mistry's surprise dismissal on Monday.
In a press statement, the Group said, "Neither the SP Group nor Mr Cyrus Mistry has made any statement yet. While the circumstances are being studied, there is no basis to media speculation about litigation at this stage."
However, Tata Group in preparation for any suits, has reportedly filed caveat with several courts including the Supreme Court, to ensure that Tata Group is heard in case of any ex parte court orders, the Times of India, reported.
Several media reports had earlier said that Mistry and Shapoorji Pallonji Group were considering legal action in the wake of the surprise removal of Mistry at Tata Son's Monday's board meeting.
While the company hasn't disclosed the reason behind the ouster, speculation is rife about differences over management and operational styles that likely led to the board decision at a time when the group is under financial strain in many of its divisions.
Mistry's removal as chairman of Tata Sons had been in the making for a while, according to several media reports.