Tata Trusts has challenged the validity of Tata Sons’ decision to reappoint N Chandrasekaran as chairman, arguing that the resolution passed on September 17 failed to satisfy a mandatory condition under the company’s Articles of Association (AoA).

In a statement, Tata Trusts said its nominee directors did not provide the affirmative support required under the AoA. It argued that because the condition was not met, the resolution itself failed.

Tata Trusts further stated that the decision was not validly passed and therefore has no legal effect. The Trusts described the resolution as void from the outset.

The latest statement escalates an ongoing disagreement over the governance and future direction of Tata Sons. At the centre of the dispute is the interpretation of the company’s AoA and the role of Tata Trusts’ nominee directors in key board decisions.

Tata Trusts used the phrase “majority among two is two” to reinforce its position that both of its nominee directors needed to provide affirmative support for the relevant condition to be satisfied.

The dispute could now depend on how the applicable AoA provisions are interpreted and whether further legal or regulatory steps are pursued by the parties involved.