- Supreme Court stayed appointment of two independent directors to Raghuvanshi Investment Private Limited
- Bench urged Sunjay Kapur family to pursue mediation in Rs 30,000 crore inheritance dispute
- Rani Kapur alleged Priya Kapur tried to control company finances before mediation
In a relief to Rani Kapur, the Supreme Court on Thursday issued a stay on the appointment of two independent directors to Raghuvanshi Investment Private Limited (RIPL), one of the firms linked to Kapur business.
The Supreme Court remarked that no one is in control of anything at present when it comes to RK Trust, or the Rani Kapur Family Trust, and associated companies to Sona Comstar as the matter is before mediation.
The bench headed by Justice JB Pardiwala urged members of late businessman Sunjay Kapur's family to pursue mediation in the Rs 30,000 crore inheritance battle, while putting on hold the appointment of two independent directors to RIPL for two months.
Rani Kapur vs Priya Kapur
Rani Kapur - the mother of businessman Sunjay Kapur, whose death playing polo in England in June last year triggered this bickering - alleged that Priya Kapur is trying to take control of company finances before mediation by attempting to appoint two independent directors to RIPL which holds significant share of the family holdings.
Senior Advocate Navin Pahwa, appearing for Rani Kapur, alleged that RIPL had issued a notice for a board meeting on May 8 to induct two additional directors. He argued that the move was aimed at altering control of the company, which holds substantial financial stakes in firm.
"They want to make sure that I am completely drowned out," Rani Kapur told the court.
The bench sought a copy of the board meeting notice and asked who was currently managing the company.
Senior Advocate Kapil Sibal, appearing for Priya Kapur's side, defended the move, saying the induction of independent directors was being done to comply with an RBI directive issued after an inspection.
"This company has been registered since 2014. The RBI conducted an inspection and directed appointment of two independent directors by May 21," Sibal said.
Court Asks To Participate In Mediation Proceedings
The court said it would ask the RBI to grant more time in view of the ongoing mediation proceedings.
Hearing a plea filed by Rani Kapur, the court asked all family members to take part in the mediation process with an open mind and not a heavy heart.
The top court requested both to continue mediation without escalating tensions.
"She is an 80 year old woman. In this frame of mind so many people must be telling her so many things…handle her with care. We will take it up immediately after vacation tell us what transpired before the mediator. You are much concerned about RBI directive na? Let the matter proceed before mediator for two months. We will ask RBI not insist on statutory compliance," Justice JB Pardiwala told counsels appearing for Priya Kapur.
The bench said the matter would be taken up immediately after the court vacation to assess the progress made before the mediator.
The court also told the parties to "wait for two months and let mediation proceed", while assuring that it would ask the Reserve Bank of India not to insist on immediate statutory compliance linked to the appointment of independent directors.
"No-one is in control of anything at present. The case is in front of the mediator," the bench remarked during the hearing.
The Supreme Court had on May 7 appointed former Chief Justice of India DY Chandrachud as mediator in the dispute.
At the outset of today's hearing, Justice Pardiwala questioned the repeated approach to the court despite the matter being referred to mediation.
"Why are you again here? If you all are not interested in mediation, we will not waste any time and we will hear it. Once we have sent it to mediation, we expect the parties to participate," the judge said.
'No One Benefits From Prolonged Litigations'
During the hearing, Justice Pardiwala told both the sides that no one benefits from prolonged litigations, "We all came with empty hands and will leave with empty hands from this world."
To this, Kapil Sibal responded with a lighter note: "I agree we all came naked in this world... otherwise only we (lawyers) will benefit from this."
"Settle it amicably otherwise no-one benefits from this. Do not go before the mediation with a heavy heart... each one of you try," the court said.
Sibal went on to suggest that the seperate proceedings going on with regard to alleged forgery of the Sunjay Kapur's will shall also go for mediation. The case has been filed by Bollywood actor Karisma Kapoor's two children Samaira and Kiaan from her marriage to the Sunjay Kapur.
The court however observed that this is a seperate case and can go anyway. "Tommorow the children might even be able to prove their case."
Justice Pardiwala also suggested to Senior Advocate Mahesh Jethmalani appearing for Karisma's kids that if the mediation in RK Trust matter goes smoothly then they can also consider mediation for will.
According to Rani Kapur, her assets were transferred into the family trust without informed consent.
She has alleged that she was made to sign documents, including blank papers, under the pretext of administrative convenience. Rani Kapur has further alleged that Priya Kapur moved swiftly after Sunjay's death to assume control over key Sona Group entities.
