SC Asks Parties Not To Affect Mediation in RK Family Trust Dispute

A bench of Justices J.B. Pardiwala and Ujjal Bhuyan was hearing an application filed by Sunjay Kapur’s mother, Rani Kapur, who raised concerns over a board meeting of Raghuvanshi Investment Pvt Ltd scheduled for May 18.

The court noted her apprehension regarding agenda items related to the appointment of two independent directors and changes in authorised signatories for operating the company’s bank accounts. Counsel for the respondents, including Priya Kapur and the company, submitted that the meeting was being held in compliance with directions of the Reserve Bank of India.

“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.

The court said that, for now, issues relating to the appointment of independent directors and changes in authorised signatories should not be taken up at the May 18 meeting.

It posted the matter for further hearing on August 6 to review the progress of mediation and said that, in the meantime, RBI directives and statutory compliances need not be insisted upon.

The bench emphasised the need for an amicable settlement, observing that prolonged litigation could lead to a “long drawn battle”.

“Listen once again and this both of us are reiterating. Settle it,” the court told the parties.

Justice Pardiwala observed, “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.”

On May 7, the court had appointed former Chief Justice of India D.Y. Chandrachud as mediator in the dispute.

The application before the court sought to restrain Priya Kapur and others from interfering with the functioning of the RK Family Trust during the mediation process.