The Supreme Court asked parties in the ₹30,000-crore Kapur family dispute to refrain from taking any steps that could directly affect the mediation process, while putting on hold certain key agenda items slated for discussion at an upcoming board meeting of a group company.
A Bench of Justices J.B. Pardiwala and Ujjal Bhuyan was hearing a fresh application moved by Rani Kapur, mother of the late Sanjay Kapur, who raised concerns over a proposed board meeting of Raghuvanshi Investment Private Limited, alleging that attempts were being made to alter the corporate balance of power even after the apex court had referred the dispute to mediation.
Senior Advocate Navin Pahwa, appearing in the matter, pointed out that although parties had agreed to mediation pursuant to the Court’s earlier order, a board meeting was convened the very next day with proposals to appoint two independent directors and alter authorised signatory arrangements, which, it was argued, could complicate settlement efforts.
Sr Advocate Kapil Sibal contended that the board actions were necessitated by Reserve Bank of India compliance requirements following a recent inspection of the NBFC entity, including mandatory committee constitution deadlines.
Taking note of the submissions, the Court said it did not propose to delve into the merits at this stage but emphasised that no party should undertake actions that may prejudice or derail mediation proceedings.
“We request the opponents not to do anything which may directly affect the mediation proceedings,” the Bench observed, while indicating that agenda items relating to appointment of independent directors and certain banking authorisations should not be taken up for the time being.
The Court noted the need for an amicable resolution, observing that prolonged litigation would serve no one’s interests. Justice Pardiwala, in a candid appeal to the parties, urged them to approach mediation with sincerity rather than as a procedural formality.
Referring to Rani Kapur, the Bench remarked that the dispute involved an elderly woman already under considerable emotional strain and called for a more sensitive approach by all concerned.
The matter has now been deferred to enable mediation proceedings to commence, with the Court indicating that it would review the progress before passing further orders.
Appearances:
For Petitioner- Senior advocates Madhvi Diwan & Navin Pahwa. Advocates Vanita Bhargava and Ajay Bhargava
For Respondents- Senior advocates Kapil Sibal, Dr Abhishek Manu Singhvi, Mahesh Jethmalani, Mukul Rohatagi, Adv Akhil Sibal