The Supreme Court of India has refused to stay a scheduled board meeting of Raghuvanshi Investment Private Limited (RIPL), which controls a substantial portion of the disputed estate amid the ongoing dispute over the Kapur family estate and family trust of late industrialist Sunjay Kapur between his mother Rani Kapur and wife Priya Kapur.
A Bench comprising Justic J B Pardiwala and Justice Ujjal Bhuyan directed that agenda items concerning the appointment of two independent directors and the change of bank account signatories should not be taken up during the meeting.
The Court also indicated that it intended to monitor the progress of the mediation proceedings initiated in the dispute over Sunjay Kapur’s estate.
The Bench noted that mediation proceedings have been initiated and cautioned all parties against taking any actions that could undermine the process. The Court emphasized that a timely settlement is in everyone’s best interest to avoid the consequences of a protracted legal conflict.
Urging the family members once again to amicably resolve the matter, the Court referred to the 80-year-old litigant’s age, the Bench observed that material possessions are temporary and urged the family to find the internal will to settle. They cautioned the parties against participating in mediation half-heartedly or under duress, calling for a genuine effort from everyone involved.
Rani Kapur, widow of late industrialist Dr. Surinder Kapur, has alleged that she was unlawfully stripped of her legacy, estate, and residence through what she describes as a fraudulent instrument known as the RK Family Trust or Rani Kapur Family Trust.
According to her plea, although the trust names her as settlor and trustee, the actual beneficiaries are Priya Kapur and others, allegedly excluding Rani Kapur and the remaining members of the Kapur family.
The immediate controversy before the Court concerned a notice dated May 8 issued by RIPL convening a board meeting for May 18. Rani Kapur argued that the notice was issued barely a day after the Supreme Court referred the family dispute to mediation before former Chief Justice of India D Y Chandrachud on May 7.
The Court questioned the repeated filing of applications despite the matter having already been referred to mediation, observing that if the parties were unwilling to genuinely participate in the process, it would proceed to hear the case on merits instead of wasting further time. It stressed that once a dispute is referred to mediation, all parties are expected to engage in the process sincerely.
Senior Advocate Navin Pahwa, appearing for Rani Kapur, submitted that the board meeting was intended to ensure that his client was “completely drowned out.” He further alleged that Rani Kapur’s shareholding had been transferred into the trust without her knowledge or consent.
Senior Advocate Kapil Sibal, appearing for the respondents, informed the Court that the Reserve Bank of India had conducted an inspection and directed that two independent directors be appointed by May 21.
The Court responded that it would address the RBI directive and subsequently ordered that the directives of the RBI and statutory compliances need not be insisted upon by the RBI or statutory authorities, for the time being.
The dispute stems from a suit filed by Rani Kapur, who has alleged that after suffering a stroke in 2017, her late son Sunjay Kapur and Priya Kapur took advantage of her physical condition and trust. She claims that several of her assets were transferred into the family trust without her informed consent and that she was made to sign documents, including blank papers, under the guise of administrative formalities.
The conflict escalated following Sunjay Kapur’s death in June last year, after which Rani Kapur alleged that Priya Kapur moved quickly to take control of key entities within the Sona Group. She contends that a significant portion of the family assets has since been transferred to Priya Kapur and the children, leaving her excluded from the estate.
Parallel proceedings concerning control of the estate and family assets are also pending before the Delhi High Court.
On April 30, the Delhi High Court allowed an interim injunction application filed by the two children of actor Karisma Kapoor and restrained Priya Sachdev Kapur from creating third-party rights over assets left behind by Sunjay Kapur. Karisma Kapoor is Sunjay Kapur’s former wife, from whom he divorced before marrying Priya Kapur.
Before the Supreme Court, Rani Kapur has sought maintenance of status quo regarding alienation of all properties forming part of the trust. During earlier hearings, the apex court had encouraged the parties to explore mediation, observing that a prolonged inheritance dispute involving an elderly litigant would serve little purpose.
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