The cash-strapped Shapoorji Pallonji group has threatened to file for unquantified damages against the Tatas for wrecking its fund-raising plans that has been built on the pledge of a small portion of the 18.4 per cent stake held in Tata Sons.

In a legal notice sent two days ago, the Cyrus Mistry camp has questioned the complicity of the $111-billion Tata group’s holding company and the members of its board of directors, individually and collectively, for seeking to block the Mistry family from raising funds against the security of the Tata Sons shares that they own.

The latest battle between the Tatas and the Mistry camp erupted after the Shapoorji Pallonji group entities signed a deal with Brookfield — a marquee Canadian investment firm — to raise Rs 3,750 crore as part of the first tranche of its fund raising plans. The group is hoping to raise Rs 11,000 crore to tide over an acute funds crunch precipitated by the pandemic.

The Tatas immediately approached the Supreme Court on September 5 seeking to restrain the Mistry group from raising capital against their Tata Sons shares. Through the petition, the Tatas sought to prevent the SP Group from creating any direct or indirect pledge of shares.

The Mistry camp has asked the group to respond to its notice “within three working days” of receiving the notice, failing which they will initiate action to stop the Tatas from once again trying to oppress a minority shareholder with a vindictive desire to harm its financial interests.

The notice said the company and its directors had been rendered “liable for damages, apart from being responsible for aiding, abetting and fomenting vexatious litigation without basis, and thereby putting at risk the lives and employment of tens of thousands of Indians in dire times of pandemic-induced socio-economic stress”.

The Mistry camp sought an explanation from the board members, particularly the independent directors, whether the oppressive action that causes prejudice to a minority shareholder was with their concurrence. An SP Group spokesperson stated that this move was solely intended to inflict irreparable harm on the group.

The notice accused the Tatas of seeking to create panic among the lenders to the SP Group entities. “The real objective was to spread panic among lenders and financial institutions and cause our clients colossal damage,” the notice said.

It added that the malafide intent was borne out by the fact that after filing an “urgent application” before the Supreme Court and seeking to be heard immediately, the Tatas had started to employ dilatory tactics.

“Now the urgency has miraculously evaporated and the application itself has been purportedly kept pending for curing defects,” the Mistry notice said.

“Abusing the process of a court, no less than the Supreme Court of India, underlines such malafide conduct you have indulged in,” the notice added.

It accused Tata Sons and its board of directors of having acted in a manner detrimental to the interests of the company and its shareholders “especially when the outcome of such a move will also have serious implications on every company in the Tata Group that holds shares in Noticee No 1 (Tata Sons), and the encumbrances they or their shareholders may create from time to time”.

It accused the independent directors of failing in their statutory duty to “protect the minority shareholders and have acted as a mere rubber stamp to implement the majority shareholders’ decision without weighing its consequences on minority shareholders”.

“We have no comment to offer,” a Tata Sons spokesperson told PTI.