Supreme Court says Kapur family feud would make 'Mahabharata seem small'

The dispute over late industrialist Sunjay Kapur’s estate intensified in the Supreme Court on Tuesday, with his mother, Rani Kapur, accusing daughter-in-law Priya Kapur of derailing an ongoing court-monitored mediation concerning the family trust and related assets, prompting the Court to remark that the family feud would make even the Mahabharata “seem small”.

While agreeing to look into the fresh plea by Rani Kapur, Justice JB Pardiwala remarked, “We have entered into an arena. The Mahabharata will look very small.”

The two-judge bench, also comprising Justice JB Pardiwala, was told by counsel for Rani Kapur that steps were being taken to alter the management structure of Raghuvanshi Investment Private Limited (RIPL), a key company linked to the disputed estate, despite the parties having agreed to mediation. The court said it will hear the matter on May 14.

The Supreme Court had on May 7 appointed former Chief Justice of India DY Chandrachud to mediate the dispute after all sides consented to settlement talks.

Appearing for Rani Kapur, counsel submitted that RIPL issued a notice on May 8 convening a Board meeting for May 18. The move, it was argued, had been initiated at the instance of Priya Kapur and was aimed at restructuring control over the company under the guise of regulatory compliance.

According to the submissions, the respondents were citing RIPL’s status as a Non-Banking Financial Company and relying on an RBI inspection report to justify the meeting, while their real intention was allegedly to appoint fresh independent directors, designate new authorised signatories for the company’s bank accounts and assume control over investment decisions.

The changes, Rani Kapur claimed, would effectively allow the respondents to take over the estate and defeat the purpose of the mediation exercise ordered by the Court.

Counsel representing RIPL opposed the allegations, maintaining that the proposed Board meeting was only being held to fulfil statutory requirements.

The litigation centres on the constitution and control of the Rani Kapur Family Trust. Separate proceedings concerning ownership and management of Sunjay Kapur’s estate are also pending before the Delhi High Court.

Before the Supreme Court, Rani Kapur has sought maintenance of status quo over the assets of the trust and restrictions on the transfer or alienation of its properties.

She has alleged that the trust structure was used to deprive her of control over her assets, including interests in the Sona Group companies.

In her pleadings, Rani Kapur stated that after suffering a stroke in 2017, she was allegedly persuaded by her son Sunjay Kapur and Priya Kapur to transfer assets into the trust without fully informed consent. She has further claimed that she was asked to sign documents, including blank sheets of paper, purportedly for administrative purposes.

The conflict is stated to have intensified after Sunjay Kapur’s death in June last year. Rani Kapur has alleged that Priya Kapur quickly moved to consolidate control over major Sona Group entities, leaving her excluded from substantial family assets.

In a fresh application, Rani Kapur contended that the decision to convene the May 18 Board meeting amounted to an attempt to frustrate the pending judicial proceedings.

“If the meeting is permitted to take place, the foundation of the present legal dispute will be irreversibly destroyed,” the application says.

“The respondents will successfully siphon off, liquidate, or secretly transfer the entire wealth of RIPL, thereby reducing the protective concerns of Rani Kapur,” the plea further alleges.

Rani Kapur has sought directions restraining Priya Kapur and other respondents from interfering in the functioning of the trust and related entities during the mediation process.

She has also asked the Court to recognise her as the sole authorised person to operate the trust, RIPL and other companies connected to the estate until the mediation concludes, besides seeking a stay on any proposed RIPL meetings.