Delhi HC seeks Priya Kapur's reply to Rani Kapur suit challenging family trust; no status quo for now

The Delhi High Court on Friday issued summons to Priya Kapur in a suit filed by her mother-in-law, Rani Kapur, seeking the cancellation of the Rani Kapur Family Trust, valued at several thousand crores.

Justice Mini Pushkarna also issued notice to 22 other defendants, including seven of Rani Kapur's grandchildren, among them two children of Bollywood actor Karisma Kapoor.

The Court said that it is not passing any orders on the interim relief application today. The interim relief application sought a status quo over the trust.

The Bench said that the interim relief plea will be considered on March 23.

Rani Kapur Family Trust holds a stake in the automotive component manufacturer Sona Comstar. While the exact valuation of the trust is not known, it is estimated to run into several thousand crores.

A dispute over the control of Sunjay kapur's assets is already pending before the Delhi High Court.

In her suit, 80-year-old Rani Kapur said that the trust was constituted fraudulently and has been used to divest her of her entire estate, including control over the Sona Group of companies. She alleged that Priya Kapur, Sunjay Kapur’s widow, is the “chief mastermind” of the conspiracy. 

She also accused Priya Kapur of acting swiftly after Sunjay Kapur’s death to assume control of key Sona Group companies without notice to her.

As per the suit, after Rani Kapur suffered a stroke in 2017, her late son Sunjay Kapur and his third wife, Priya Kapur, exploited her physical dependence and trust to orchestrate a complex scheme transferring all her assets into the RK Family Trust without her informed consent. 

According to the suit, was repeatedly made to sign documents, including blank papers, under the pretext of administrative convenience.

Today, Senior Advocate Vaibhav Gaggar appeared for Rani Kapur and took the court through the background of the case and the developments since Sunjay Kapur's death in June last year.

He stated that soon after Sunjay's death, Priya Kapur made efforts to gain control of his assets, and she has become the beneficiary of nearly 60% of the family's assets, while 40% has gone to the children, leaving her with nothing.

"So, it is to be believed that within six months of marriage, I have executed the trust, divested everything and voluntarily said that if you [Sunjay] die, the family won’t have anything, but everything will go to them," Gaggar argued.

He added that the estates must be protected.

Meanwhile, Senior Advocate Akhil Sibal appeared for Priya Kapur and said that the suit is not maintainable and they will file a plea seeking its dismissal.

"A trustee is challenging the trust. That can't be done," Sibal said.

On the interim relief plea, the Court said that it will consider the replies filed by the defendants and then pass appropriate orders.

Gaggar also pressed for the disclosure of all documents related to the trust.

Justice Pushkarna said nothing can be hidden from the Court.

"You [Priya Kapur] are required to reveal all information, including the meeting minutes and your accounts. You must not withhold any details from the court," Justice Pushkarna told Sibal.

Sibal said that he will produce documents to show the authenticity of the trust and if the court believes that any other documents need to be disclosed, he will do that.

He added that no application should be allowed on the first date.

The Bench then proceeded to issue summons and notice in the case.