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SC Appoints Ex-CJI Chandrachud in Kapur Trust Dispute
In a significant push towards , the has appointed former Chief Justice DY Chandrachud as mediator in the acrimonious family battle over the RK Family Trust, pitting 80-year-old Rani Kapur against her late son Sunjay Kapur's widow, Priya Kapur. The bench, comprising Justices JB Pardiwala and Ujjal Bhuyan, referred the matter—titled
Rani Kapur Versus Priya Sachdev Kapur and Ors.
, SLP(C) Nos. 13943-13945/2026—after all parties consented during the hearing on . At stake is control over an estimated Rs 30,000 crore estate linked to the Sona Group of Companies, with allegations of fraudulent trust creation, asset diversion, and . The court urged an "open mind" approach, cautioning against public statements or social media posts, remarking,
"It's a family dispute, let it be confined among the family only. It should not be a source of entertainment."
This development follows the court's earlier suggestion on April 27, noting that protracted litigation would serve no purpose, particularly for the elderly Rani Kapur. The order underscores the judiciary's growing inclination towards mediation in high-stakes family inheritance disputes, potentially averting years of courtroom battles.
The Family Dispute Unfolds: A Timeline of Inheritance Claims
The roots of this dispute trace back to , when Dr. Surinder Kapur, promoter of the Sona Group and father of Sunjay Kapur, passed away. His will, dated , bequeathed his entire estate—including substantial shareholdings in Sona Group companies—to Rani Kapur as the sole beneficiary and legatee. The probated the will in , with no objections from Rani's three children, including Sunjay.
Complications arose post-2017, when Rani, recovering from a stroke, alleges she was coerced into signing documents, including blank papers, under the guise of administrative formalities. Around
, the "RK Family Trust" or "Rani Kapur Family Trust" was purportedly created, allegedly diverting her assets through a
"complex web of illegal transactions"
without her knowledge or informed consent. Rani claims the trust is "illegal, fraudulent, and unregistered," stripping her of her matrimonial home, legacy, and control over family businesses.
The conflict escalated following Sunjay Kapur's sudden death in London in . Rani accuses Priya Kapur of swiftly assuming directorships and managing directorships in key Sona Group entities mere days after the funeral, without consultation. Priya and her son Azarias, along with interests of Sunjay's children from his prior marriage to Bollywood actor Karisma Kapoor—Samaira Kapur and Kiaan Raj Kapur—are now entangled, with competing claims over Sunjay's personal estate and a contested will favoring Priya.
Supreme Court Steps In: From Suggestion to Appointment
During the , hearing, the bench had issued notices to Priya and others on Rani's seeking to declare the trust , alongside a . Observing the familial nature and Rani's age, the justices proposed mediation:
"a protracted litigation at the age of 80 will be of no consequence."
On May 7, senior counsel for all parties graciously agreed. The bench formalized the reference, appointing ex-CJI Chandrachud, a move reflecting confidence in his neutrality and expertise in complex civil matters. The order, as recorded, states:
"We make it clear that this mediation is confined only so far as the family members are concerned. We make one request to all parties before us that they may not make any statement in public and may not go on social media. This being a family affair, the endeavour on their part should be to get the disputes resolved at the earliest and put an end to the entire matter. We firmly believe that all parties should participate in the mediation proceedings with an open mind. It will be in the interest of one and all if they are able to resolve the entire matter before the ld. Mediator. Otherwise, this is going to be a long drawn litigation."
The matter is listed for a preliminary mediation report in .
Key Parties and Stellar Legal Representation
Rani Kapur is represented by . Priya Kapur fields , who urged the court to restrain Rani from "washing dirty linen" on national TV—a plea that prompted Justice Pardiwala's entertainment remark. Priya's son Azarias has ; Karisma Kapoor's children are backed by ; appear for Raghuvanshi Investment Pvt. Ltd.; while represent other respondents.
This array of top-tier counsel highlights the dispute's gravity, involving not just family but corporate stakes in Sona Group entities.
Core Allegations: Fraud, Forgery, and Exploitation
Rani's suit portrays a tale of betrayal: post-stroke vulnerability exploited by Sunjay and Priya to siphon assets into the trust. She seeks restoration of her pre-2017 estate, alleging forgery and lack of consent under the ( on lawful purpose and revocation). Post-Sunjay's death, Priya's rapid consolidation—securing board positions without disclosure—is termed a "swift takeover," leaving Rani destitute despite her probate-backed claims.
Priya denies these, asserting full disclosures and legitimate trust operations, though details remain .
’s Parallel Interim Safeguards
Complementing the SC proceedings, the (Justice Jyoti Singh) recently granted interim relief in related suits. Noting "legitimate suspicions" around Sunjay's will—such as feminine pronouns, non-registration, and Priya's dual role as propounder/beneficiary—the court restrained asset dissipation. Key orders: no alienation/transfer of Indian company shareholdings; bar on provident fund withdrawals, artwork disposal, personal effects, or cryptocurrency dealings; freeze on foreign bank accounts (immovables abroad excluded). Parties must file account statements.
Rani's separate Delhi HC suit reinforces her probate claims, while the children challenge Sunjay's will authenticity, demanding proof beyond suspicion.
Legal Analysis: Mediation's Role in Trust and Succession Disputes
This referral exemplifies , promoting ADR in family suits where emotions and finances collide. Under the Trusts Act, Rani's fraud/ claims () could invalidate the trust if proven, shifting burden to trustees. The SC's age consideration invokes equity principles, prioritizing swift resolution over technicalities.
The gag on public/social media aligns with precedents curbing publicity (e.g., Sahara India on media trials), protecting family privacy amid digital amplification. Appointing an ex-CJI signals elevation of mediation, akin to cases like Afcons Infrastructure endorsing .
Implications for Legal Practice and the Justice System
For practitioners, this case spotlights: - ADR Uptick: SC's nudge reduces docket burden; lawyers must prepare clients for "open mind" negotiations, potentially via family settlements (valid if equitable). - Estate Planning Vigilance: Highlights risks in post-incapacity trusts—mandate robust consent proofs, registrations; stroke/age vulnerabilities invite scrutiny. - Interim Relief Trends: Delhi HC's asset freeze model aids preservation in multi-jurisdictional estates (India/abroad). - Privacy Imperative: In celebrity-linked disputes (Karisma Kapoor angle), courts may routinely impose no-social-media directives, influencing PR strategies.
The Rs 30,000 crore scale amplifies scrutiny on Sona Group's governance, possibly triggering /IBC lenses if shareholding dilutes.
Looking Ahead: Settlement or Prolonged Battle?
As mediation commences under Justice Chandrachud's stewardship, the SC awaits a preliminary report. Success could model amicable high-value partitions, benefiting all—especially Rani's twilight years. Failure reverts to litigation, unraveling trusts, wills, and corporate controls. For legal professionals, this saga underscores mediation's potency in preserving families and fortunes alike.
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