SC urges Kapur family to settle trust dispute amicably
The Supreme Court urged Rani Kapur and Priya Kapur to avoid actions affecting mediation in their dispute over the RK Family Trust. The court stressed an amicable settlement, paused discussions on company appointments, and warned the case could otherwise become a prolonged legal battle
New Delhi: The Supreme Court on Thursday asked late industrialist Sunjay Kapur’s mother Rani Kapur and his wife Priya Kapur, embroiled in a dispute over the family trust, not to do anything that could directly affect mediation proceedings.
The apex court on May 7 appointed former Chief Justice of India D Y Chandrachud to act as mediator in the dispute. On Thursday, the top court observed that it would be in the interest of all parties concerned to put an end to the entire dispute amicably, otherwise it could be a “long drawn battle”.
A bench of Justices J B Pardiwala and Ujjal Bhuyan was dealing with an application filed by the 80-year-old Rani Kapur, who expressed concern about the meeting of board of directors of Raghuvanshi Investment Pvt Ltd scheduled to be held on May 18. The counsel appearing for Rani Kapur told the bench that Raghuvanshi Investment Pvt Ltd has substantial holding in the parent company.
The bench noted that Rani Kapur was concerned about the items on the agenda that related to the appointment of two independent directors and some modification in the authorised signatories for the operation of bank accounts of the company.
The counsel appearing for the respondents, including Priya Kapur and Raghuvanshi Investment Pvt Ltd, said the appointment of independent directors as such should not be a matter of any objection and the meeting was being convened in view of some directive issued by the Reserve Bank of India (RBI).
“We do not propose to say anything further at this point of time. We have already requested the mediator to start with the mediation proceedings. For the present, we request the opponents not to do anything which may directly affect the mediation proceedings,” the bench said. It said for the present, the issues relating to the appointment of two independent directors and some modification in authorised signatories may not be discussed in the meeting scheduled on May 18.
“We would like to examine the progress that takes place in so far as the mediation is concerned. Post this matter for further hearing on August 6,” the bench said. It said in the meantime, the directives of the RBI and statutory compliances need not be insisted upon by the RBI or statutory authorities.
The counsel appearing for Rani Kapur said since the court had already referred the parties for mediation, such meetings could aggravate the situation. “Listen once again and this both of us are reiterating. Settle it,” the bench told the lawyers appearing for the parties.
Justice Pardiwala observed there had to be a will to settle the matter. “Don’t go before the mediator with a heavy heart or with some reservations that just because court has pushed us for mediation, let us go,” he said.
“We all came with empty hands and we have to go with empty hands. All that we can carry is our souls. We came with our soul and soul is the only thing which we are going to carry,” Justice Pardiwala observed.
At the outset, the bench asked why the matter had come up again. “Why are you again here?” the bench asked. Justice Pardiwala said, “We make it clear today. If you all are not interested in mediation, then we will not waste any further time. We will hear the matter on merits and finish it off.” He said the court’s order must have gone to the mediator and he would fix the first meeting between the parties.
“Look at it from this angle. Here is an 80-year-old woman, already shaken with all this. She must be guided by so many people and with this frame of mind, just handle her with care. Now, we have asked you all to explore the possibility of an amicable settlement, otherwise this is going to be a long drawn issue,” Justice Pardiwala observed.
The top court had agreed to hear the application filed by Rani Kapur seeking a direction to restrain Priya Kapur and others from interfering with the functioning of the “RK Family Trust” during the pendency of the mediation proceedings.
On April 27, the top court sought a response from Priya Kapur and others on a lawsuit by Sanjay Kapur’s mother seeking directions to declare the family trust “null and void”.
The bench had issued notice to Priya Kapur and others on the plea filed by Rani Kapur alleging that the trust, which was constituted in her name in October 2017, was a product of “forged, fabricated and fraudulent” documents. The legal proceedings over control of the estate and assets are pending before the Delhi High Court and the petition before the top court seeks a status quo on alienation of all the properties of the trust.
In the lawsuit, Rani Kapur has sought a direction to permanently restrain the defendants — her daughter-in-law Priya Kapur and others, including grandchildren — from utilising or acting in furtherance of the “RK Family Trust” in any manner whatsoever.
Her plea submitted that she was the sole beneficiary of the entire estate of her late husband, Surinder Kapur, who was the promoter of various businesses, including the Sona Group of Companies, and a “systematic fraud” was committed on her when the assets were transferred to the “RK Family Trust”.
Till the time of his death, Sunjay Kapur never confirmed to Rani Kapur that she had actually been divested of all her rights, assets and legacy, and was never provided a copy of the purported trust’s documents, the plea contended. Sunjay Kapur died on June 12 last year after collapsing during a polo match in England. He reportedly suffered a cardiac arrest.
