Mumbai: The Bombay High Court is scheduled to hear a legal challenge concerning alleged unlawful share transfers linked to the Tata conglomerate, with notices issued to several senior figures associated with the Tata Group, including Noel Tata and N Chandrasekaran.

The matter is expected to come up before a division bench comprising Justice Advait Sethna and Justice Sandesh Patil later today.

The case originates from a legal notice sent on behalf of Suresh Tulsiram Patilkhede through advocate Katyayani Agrawal to ten individuals connected to the Tata Group. The notice alleges that certain transfers of Tata Sons shares held by charitable trusts linked to the Tata family were conducted unlawfully, resulting in financial losses to the trusts and their beneficiaries.

1989 Tata Sons share transfer questioned

At the centre of the dispute is a transfer of 833 Tata Sons equity shares in January 1989 from the Navajbai Ratan Tata Trust (NRTT) to Naval Tata, father of the late Ratan Tata and Noel Tata.

According to the legal notice, the shares were allegedly transferred without any monetary consideration shortly after Naval Tata resigned as a trustee of the trust.

The complainant has argued that there was no valid board resolution authorising the transaction and no evidence suggesting that the trust benefited from relinquishing the shares.

The notice further claims that the transaction may therefore be legally unsustainable under trust and corporate governance principles.

The disputed shares reportedly originated from a corpus donation made by the Sir Ratan Tata Trust (SRTT) in December 1974, just days after the Navajbai Ratan Tata Trust was established.

Following bonus share allotments in 1979, the holding reportedly increased to 833 equity shares. The notice states that the book value of the shares at the time stood at approximately Rs 7.79 lakh.

Allegations of trust asset diversion

The complaint further alleges that after Naval Tata’s death in 1993, the shares eventually passed into private family ownership through inheritance by Simone Tata and her children — Ratan Tata, Jimmy Tata and Noel Tata.

According to the notice, this amounted to an unlawful diversion of assets originally belonging to a charitable trust.

The complainant has also alleged violations of the Companies Act, Tata Sons’ Articles of Association and the stated objectives of the trust.

Additionally, the notice raises concerns regarding related-party transactions involving Ratan Tata, citing his role as one of the settlors of the Navajbai Ratan Tata Trust.

Notices issued to multiple individuals

Apart from Noel Tata and N Chandrasekaran, the legal notice has also reportedly been served to Neville Tata and other individuals linked to the Tata Group.

The complainant has sought restoration of the alleged losses within 15 days and warned that civil as well as criminal proceedings could be initiated if the demands are not addressed.

The case is likely to attract significant attention due to the Tata Group’s position as one of India’s largest and most influential business conglomerates.

Matter expected to face legal scrutiny

Legal experts believe the proceedings could involve examination of trust governance practices, historical share transfer procedures and compliance with corporate regulations applicable at the time of the transactions.

The Bombay High Court is expected to initially examine the maintainability of the plea and the legal grounds raised in the complaint before deciding on further proceedings.

As of now, there has been no official public response from Tata Sons or Tata Trusts regarding the allegations mentioned in the legal notice.

The hearing is expected to provide greater clarity on the nature of the dispute and whether the matter will proceed to detailed judicial examination.