New Delhi [India], January 29 : The Delhi High Court on Thursday issued summons to Priya Kapur and 22 other defendants in a civil suit filed by Rani Kapur seeking cancellation of the Rani Kapur Family Trust, which is stated to be valued at several thousand crore rupees.
The Court, however, declined to grant any immediate interim relief, including an order to maintain the status quo over the trust.
A single-judge Bench of Justice Mini Pushkarna clarified that, at this stage, it was only issuing summons in the main suit and notice in the application seeking interim relief. Observing that the trust was not a newly created one, the Court said it would consider the interim prayers only after hearing all parties. The defendants have been directed to file their replies within four weeks, after which the interim application will be taken up.
Senior Advocate Vaibhav Gaggar, appearing for Rani Kapur, took the Court through the background of the dispute and developments following the death of industrialist Sunjay Kapur in June last year.
He alleged that immediately after Sunjay Kapur's death, Priya Kapur took steps to gain control over the family assets and is now the beneficiary of nearly 60 per cent of the estate, with the remaining 40 per cent going to the children, leaving the plaintiff with no share.
Gaggar argued that it was inconceivable that Rani Kapur would have, within six months of her son's marriage, voluntarily executed a trust, divested herself of all assets and agreed that, upon her son's death, the entire estate would pass to others.
Gaggar further contended that Rani Kapur was the sole settlor, trustee, and beneficiary of the earlier family trusts, and that the Rani Kapur Family Trust was created without her informed consent. He alleged that the signatures attributed to her on the trust documents were not hers and claimed that the estate required urgent protection, asserting that "something is seriously wrong" in the manner in which assets were being dealt with.
Senior Advocate Akhil Sibal, representing Priya Kapur, strongly disputed the allegations and termed them a "complete falsehood".
He submitted that the suit itself was not maintainable and said that a plea would be filed seeking its dismissal. "A trustee is challenging the trust. That cannot be done in law," Sibal argued, adding that videographic evidence of the notarisation and execution of documents, including signatures, would be placed on record. He also opposed the grant of any interim relief at the threshold stage.
Counsel appearing for other defendants raised objections regarding maintainability and the arraying of a large number of parties. The Court observed that all relevant documents, including trust deeds, minutes of meetings and financial records, would have to be disclosed and that no material facts could be suppressed from judicial scrutiny.
Advocate Saakaar Sardana, appearing for Rani Kapur's grandchildren the children of her daughter Mandhira Kapur Smith told the Court that the grandchildren were beneficiaries under the original registered Dr. S.K. Family Trust but have now been deprived of their inheritance. He said they are before the Court to protect their rights and are supporting their grandmother's case.
After hearing, the Bench directed that the plaint be registered as a suit, summons be issued and accepted, and notices be issued in the connected interim applications, including those seeking disclosure and production of documents. It also appointed actor Karisma Kapoor as the next friend of minor defendants Samaira and Kiaan Kapur.
The matter will be taken up next after completion of pleadings, when the Court will consider the application seeking interim relief, including the prayer for maintenance of status quo over the trust.
Rani Kapur has recently moved the Delhi High Court against her daughter-in-law, Priya Kapur and the children of actor Karisma Kapoor, challenging the formation and administration of the RK Family Trust.
She has alleged that the trust was created without her informed consent and resulted in her complete exclusion from assets that originally belonged to her.
According to the plaintiff, the disputed transactions took place when she was unwell after suffering a stroke and was dependent on her son for managing her personal and financial affairs.
She has claimed that she was assured her estate remained secure and under her control, even as steps were allegedly taken that adversely affected her ownership rights.
The suit further alleges that she was made to sign documents without being properly informed of their contents or legal implications, and that some documents were signed in blank. These acts, she claims, were part of a larger design to restructure the family estate through the trust to her detriment.
Through the suit, Rani Kapur has sought cancellation of the RK Family Trust and restoration of her estate, contending that the trust was brought into existence through misrepresentation, undue influence and without her informed consent.