RK Family Trust dispute: SC allows RIPL board meeting but bars discussion on directors, bank signatories

NEW DELHI: The Supreme Court on Thursday refused to stall a proposed board meeting of Raghuvanshi Investment Private Limited (RIPL) in the high-profile RK Family Trust dispute involving Rani Kapur and Priya Sachdev Kapur, but restrained the company from taking up agenda items relating to the appointment of independent directors and changes in authorised bank signatories during the meeting.

A Bench of Justices J.B. Pardiwala and Ujjal Bhuyan passed the direction while hearing a fresh plea moved by 80-year-old Rani Kapur, mother of late businessman Sunjay Kapur, who had sought a stay on the board meeting scheduled for May 18.

At the outset, the apex court observed that since the dispute had already been referred to mediation, the parties should refrain from taking any steps which may directly impact the mediation proceedings. “We have already requested the mediator to start with the mediation proceedings. For the present, we request the opponents not to do anything which may directly affect mediation. Time and again, we have said it will be in the interest of all parties to put an end to this dispute, else it will be a long drawn battle,” the Justice Pardiwala-led Bench observed.

Appearing on behalf of Rani Kapur, senior advocate Navin Pahwa argued that the proposed board meeting was intended to ensure that she is “completely drowned out” from the affairs of the family-controlled entities.

Referring to the dispute over the family estate, it was argued that Rani Kapur’s majority shareholding in the group companies had allegedly been transferred into a trust without her consent.

“My shareholding was transferred into the trust behind my back. I was holding the majority shares in all the companies. My daughter-in-law transferred my shareholding into a trust,” the senior counsel submitted on behalf of Rani Kapur.

On the other hand, senior advocate Kapil Sibal, appearing for the respondents, including Priya Sachdev Kapur and RIPL, submitted that the appointment of independent directors was being undertaken pursuant to directions issued by the Reserve Bank of India (RBI) following an inspection.

Sibal argued that the proposed board meeting was convened primarily to comply with statutory and regulatory obligations and not with an intention to alter the status quo during the mediation process.