The board’s decision, announced Thursday, has been labeled illegal by the chairman of Tata Trusts, which holds a 66% stake in the company.
The announcement marks a sharp escalation in a dispute that has spanned months and involved two separate conflict threads.
Tata Trusts has historically challenged certain board actions, and this latest claim adds to the tension between the trust and the company’s management.
No further details on the nature of the decision or subsequent legal steps have been disclosed, and the board has not set a resolution timetable.