New Delhi [India], February 10 : The Delhi High Court on Tuesday suggested mediation as a way to resolve the ongoing dispute concerning the RK Family Trust while hearing several applications in an ongoing suit filed by Rani Kapur seeking dissolution of the trust.
A single-judge Bench of Justice Mini Pushkarna advised the parties to resolve the matter amicably, observing, "Try to respect the relations. Resolve it in a peaceful manner. These are the fruits of someone else's labour and a blessing on you. Let it not turn into a curse."
During the hearing, the Court heard submissions on behalf of Rani Kapur through Senior Advocate Vaibhav Gaggar, who sought preservation of the estate, expressing apprehension that the assets could be siphoned off. He alleged that Priya Kapur was acting in haste and in a fraudulent manner in dealing with the estate.
The plea for preservation was supported by some of the defendants, including her daughter and the children of actor Karisma Kapoor.
The allegations were, however, strongly opposed by Priya Kapur. Senior Advocate Akhil Sibal submitted that when Sunjay Kapur took over the company, it was incurring losses, and through his hard work and leadership, he turned it around, eventually bringing it to a stage where the company was able to launch its IPO in 2021.
The Court also issued notice on applications moved by Priya Kapur seeking dismissal of the suit and directed parties to file their responses within four weeks, with rejoinders, if any, to be filed within two weeks thereafter. The matter is now listed for hearing on March 23.
The main case challenges the RK Family Trust Deed dated October 26, 2017, as void and seeks restoration of assets allegedly transferred to the trust.
During the proceedings, the Court advised all parties to respect the plaintiff, noting that she is a senior citizen and that family relationships should be valued. The Bench observed that the family had inherited significant wealth left behind by the late Surender Kapur and remarked that such blessings should not be allowed to become a source of conflict.
The judge also noted from experience that family disputes often involve "half-truths and half-lies," and encouraged the parties to sit together and resolve their differences respectfully.
Earlier, the Delhi High Court had issued summons to Priya Kapur and 22 other defendants in the civil suit filed by Rani Kapur seeking cancellation of the RK Family Trust, which is stated to be valued at several thousand crore rupees.
On the last date of hearing, Senior Advocate Vaibhav Gaggar, appearing for Rani Kapur, had taken the Court through the background of the dispute following the death of industrialist Sunjay Kapur in June last year. He alleged that shortly after his death, Priya Kapur took steps to gain control over the family assets and became 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.
He argued that it was unlikely that Rani Kapur would have voluntarily executed a trust within months of her son's marriage and divested herself of all assets, agreeing that the estate would pass to others upon her son's death. It was further contended that she was the sole settlor, trustee and beneficiary of earlier family trusts and that the RK Family Trust was created without her informed consent. He also claimed that the signatures attributed to her on the trust documents were not hers and that urgent protection of the estate was required.
Senior Advocate Akhil Sibal, who appeared for Priya Kapur, had strongly disputed the allegations, calling them a "complete falsehood" and contending that the suit itself was not maintainable. He submitted that a trustee cannot challenge a trust in law and stated that videographic evidence of the execution and notarisation of documents, including signatures, would be placed on record. He also opposed the grant of interim relief at the initial stage.
Counsel for other defendants had also raised objections regarding maintainability and the inclusion of multiple parties. The Court had observed that all relevant documents, including trust deeds, minutes of meetings and financial records, would need 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, had told the Court that they were beneficiaries under the original Dr. S.K. Family Trust but had now been deprived of their inheritance and were supporting their grandmother's case to protect their rights. The Court had also appointed actor Karisma Kapoor as the next friend of minor defendants Samaira and Kiaan Kapur.
Rani Kapur, in her suit, has alleged that the trust was created without her informed consent and resulted in her exclusion from assets that originally belonged to her. She claimed that 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. According to her, she was made to sign documents without being properly informed of their contents or legal implications, and some were allegedly signed in blank as part of a larger design to restructure the family estate to her detriment.
Through the suit, she 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.