The Supreme Court on Thursday advised the family members of late industrialist Sunjay Kapur, who are involved in a dispute over a family trust, not to take any steps that could adversely impact the ongoing mediation proceedings.
The apex court had earlier, on May 7, appointed former Chief Justice of India D Y Chandrachud as mediator in the matter. During Thursday’s hearing, the court observed that an amicable settlement would be in the best interest of all parties, warning that the dispute could otherwise turn into a 'long drawn battle'.
A bench comprising Justices J B Pardiwala and Ujjal Bhuyan was hearing an application filed by 80-year-old Rani Kapur, who raised concerns regarding a board meeting of Raghuvanshi Investment Pvt Ltd scheduled for May 18.
Appearing for Rani Kapur, counsel informed the bench that the company held substantial shares in the parent group. The court noted that her concerns centred around agenda items involving the appointment of two independent directors and proposed changes to authorised signatories operating the company’s bank accounts.
Counsel representing the respondents, including Priya Kapur and Raghuvanshi Investment Pvt Ltd, argued that the appointment of independent directors should not attract objections and said the meeting was being convened in compliance with directives issued by the Reserve Bank of India.
“We do not propose to say anything further at this point of time. We have already requested the mediator to commence the mediation proceedings. For now, we request the parties not to undertake anything that may directly affect the mediation process,” the bench said.
The court directed that issues relating to the appointment of independent directors and modifications to authorised signatories should not be taken up in the May 18 meeting for the time being.
“We would first like to examine the progress of the mediation proceedings. List the matter for further hearing on August 6,” the bench ordered. It further observed that, for the interim period, statutory authorities and the RBI need not insist on immediate compliance with the related directives.
Rani Kapur’s counsel argued that since the court had already referred the matter to mediation, holding such meetings could further escalate tensions between the parties.
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“Listen once again — both of us are reiterating this. Settle the matter,” the bench told the lawyers appearing in the case. Justice Pardiwala remarked that any settlement effort would require genuine willingness from all sides. “Do not approach the mediator with a heavy heart or merely because the court has directed you to do so,” he said.
In a philosophical observation, Justice Pardiwala added, “We all come empty-handed and leave empty-handed. The only thing we carry with us is our soul.” At the outset of the hearing, the bench questioned why the matter had resurfaced before the court so soon. “Why are you here again?” the judges asked.
Justice Pardiwala cautioned the parties that if they were not serious about mediation, the court would proceed to hear the case on merits instead of wasting further time.
“We make it clear today—if you are not interested in mediation, we will hear the matter finally and dispose of it,” he observed, adding that the mediator would soon schedule the first round of discussions.
Referring to Rani Kapur’s age and emotional condition, Justice Pardiwala said, “Here is an 80-year-old woman already deeply shaken by all this. She must be receiving advice from many people, but in such a state of mind, she should be handled with care.”
The top court had earlier agreed to hear Rani Kapur’s application seeking directions to restrain Priya Kapur and others from interfering in the functioning of the “RK Family Trust” during the mediation process.
On April 27, the court had issued notices to Priya Kapur and other respondents after Rani Kapur filed a suit seeking to declare the family trust “null and void”. In her petition, Rani Kapur alleged that the trust, created in her name in October 2017, was based on “forged, fabricated and fraudulent” documents.
The legal battle over the control of family assets and the estate is also pending before the Delhi High Court, while the petition before the Supreme Court seeks maintenance of status quo on alienation of properties linked to the trust.
Rani Kapur has sought permanent restraint orders against Priya Kapur, grandchildren and other defendants from using or acting through the “RK Family Trust” in any manner.
Her plea stated that she was the sole beneficiary of the estate of her late husband Surinder Kapur, promoter of the Sona Group and related businesses, and alleged that a “systematic fraud” had been committed while transferring assets into the trust.
The petition further claimed that Sunjay Kapur never informed her that she had allegedly been stripped of her rights, assets and legacy, nor was she ever provided copies of the trust documents.
Sunjay Kapur passed away on June 12 last year after collapsing during a polo match in England. Reports stated that he suffered a cardiac arrest.
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