SC Asks Kapurs Not To Do Anything That May Affect Mediation Process

New Delhi : The Supreme Court on Thursday asked Rani Kapur, mother of late industrialist Sunjay Kapur, and his wife Priya Kapur, who were in a dispute over the family trust, not to do anything that could directly affect the mediation process. On May 7, the apex court appointed former Chief Justice of India DY Chandrachud as a mediator in the dispute. The top court on Thursday said it would be in the interest of all parties involved to end the entire dispute amicably, otherwise it could end up being a “protracted war”.

A bench comprising Justices JB Pardiwala and Ujjal Bhuyan was dealing with the application filed by 80-year-old Rani Kapur, who had expressed concerns over the board meeting of Raghuvanshi Investment Pvt Ltd scheduled to be held on May 18.

Rani Kapur’s lawyer told the bench that Raghuvanshi Investment Pvt Ltd holds significant stake in the parent company.

The Board stated that Rani Kapur was concerned about the items on the agenda regarding the appointment of two independent directors and some changes in the signatories regarding the operation of the company’s bank accounts.

Counsel for the respondents, including Priya Kapur and Raghuvanshi Investment Pvt Ltd, said that the appointment of independent directors should not be subject to any objection and the meeting was convened in the light of certain directives issued by the Reserve Bank of India (RBI).

“We do not propose to say anything further at this point. We have already requested the mediator to initiate the mediation process. For now, we request the opponents not to do anything that could directly affect the mediation process,” the panel said. he said.

It was stated that at the meeting planned to be held on May 18, issues related to the appointment of two independent members and some changes in the authorized signatories will not be discussed for now.

“We would like to review the progress made on mediation. Post this matter for a further hearing on August 6,” the board said.

Meanwhile, it was stated that there is no need to insist on RBI’s directives and legal compliances by the RBI or statutory authorities.

Rani Kapur’s lawyer said such meetings could worsen the situation as the court had referred the parties to mediation.

The court panel said to the lawyers present on behalf of the parties, “Listen once again, we are both repeating this. Solve it.”

Justice Pardiwala observed that there must be a will to resolve the matter.

“Do not appear before the mediator with peace of mind or with reservations just because the court pushed us into mediation, let us go,” he said.

Justice Pardiwala said, “We all came with empty hands and we have to leave with empty hands. All we can carry is our souls. We came with our soul and all we have to carry is our soul.”

Initially, the board asked why the issue was brought up again.

“Why are you here again?” the bench asked.

“We are making this clear today. If all of you are not interested in mediation, then we will not waste any more time. We will hear the matter on its merits and finish it,” Justice Pardiwala said.

He said that the court decision should have gone to the mediator and that he would determine the first meeting between the parties.

“Look at it this way. Here is an 80-year-old woman who is already shaken by all this. She should be guided by a lot of people and with that mindset, treat her with care. Now we have asked you all to explore the possibility of an amicable solution, otherwise it will be a long-term issue,” Justice Pardiwala said.

The high court agreed to hear Rani Kapur’s application seeking to restrain Priya Kapur and others from interfering in the functioning of “RK Family Foundation” while the mediation case was ongoing.

On April 27, the high court sought responses from Priya Kapur and others on a case filed by Sanjay Kapur seeking a direction to declare his mother’s family trust “null and void”.

The Board had issued a notice to Priya Kapur and others upon the defense submitted by Rani Kapur in October 2017, claiming that the foundation established in her name was the product of “fake, fabricated and fraudulent” documents.

Legal proceedings regarding control of property and assets are ongoing before the Delhi High Court and the petition before the top court seeks status quo on transfer of all properties of the trust.

In the lawsuit, Rani Kapur sought an order permanently restraining the defendants — her daughter-in-law Priya Kapur and others, including her grandchildren — from using or acting for the benefit of the “RK Family Foundation” in any way.

In her plea, she alleged that she was the sole beneficiary of the entire estate of her late husband Surinder Kapur, an entrepreneur of various businesses including Sona Group of Companies, and that a “systematic fraud” was committed against her when the assets were transferred to the “RK Family Foundation”.

The defense alleged that Sunjay Kapur never confirmed to Rani Kapur that all her rights, assets and inheritance were taken away from her until her death and that she was never given a copy of the documents of the alleged trust.

Sunjay Kapur died after collapsing during a polo match in England on June 12 last year. It was reported that he had a heart attack.