Supreme Court Directs Family Members to Avoid Interference in Trust Dispute

The Supreme Court issued a directive on Thursday to Rani Kapoor, the mother of the late businessman Sanjay Kapoor, and his wife Priya Kapoor, instructing them not to take any actions that could directly affect the ongoing arbitration proceedings related to their family trust dispute. Previously, on May 7, the court appointed former Chief Justice of India D.Y. Chandrachud as the arbitrator in the case linked to the RK Family Trust. During the hearing, the court emphasized that resolving this matter amicably would be in the best interest of all parties involved, warning that otherwise, it could escalate into a prolonged legal battle.

The bench, comprising Justices J.B. Pardiwala and Ujjwal Bhuyan, was addressing a petition filed by 80-year-old Rani Kapoor, who expressed concerns regarding a board meeting of Raghuvanshi Investment Private Limited scheduled for May 18. Her attorney argued that there is a significant stake in the parent company, raising concerns over certain agenda items proposed for the meeting. These included the appointment of two independent directors and changes to the authorized signatories for the company's bank accounts.

Lawyers representing Priya Kapoor and Raghuvanshi Investment Private Limited informed the court that the appointment of independent directors should not be viewed as contentious and that the meeting was being conducted in accordance with guidelines issued by the Reserve Bank of India (RBI). In response to the arguments, the bench stated that they did not wish to comment further at this time. They had already requested the arbitrator to initiate the arbitration proceedings and urged the opposing parties not to undertake any actions that could directly impact the arbitration process.

The court further noted that discussions regarding the appointment of independent directors and amendments to authorized signatories should not take place during the May 18 meeting. The bench expressed a desire to review the progress made concerning the arbitration. The next hearing for this case is scheduled for August 6. Additionally, the court indicated that there is no immediate need to emphasize compliance with RBI directives and statutory requirements by regulatory authorities. Earlier, the Supreme Court had agreed to hear Rani Kapoor's petition, which sought to prevent Priya Kapoor and others from interfering in the operations of the RK Family Trust while arbitration is ongoing.