Supreme Court has sent long-running family business disputes, among Kalyani Group patriarch Baba Kalyani and his siblings to mediation.

The Supreme Court has referred a long-running family dispute between industrialist Babasaheb Neelkanth Kalyani and his sister Sugandha Hiremath estimated at over Rs 1 lakh crore to former Supreme Court judge Justice L. Nageswara Rao for mediation.

A CJI Surya Kant led bench has directed that proceedings on Babasaheb Kalyani’s application under Order VII Rule 11 CPC before the Bombay High Court will remain deferred during the mediation.

"Mediation can succeed many times later. We are putting a word of advice to them that this is high time they should bury the hatchet. They should think of so many other prospective things in future. Instead of diverting their attention and energy, they should focus on resolving the dispute. This is the magic of mediation.", the bench also comprising Justices Bagchi and Mohana noted.

Senior Advocate Abhishek Manu Singhvi, appearing for Babasaheb Kalyani, opposed another round of mediation, submitting that earlier attempts before the Supreme Court and the Pune District Court had failed and that the Order VII Rule 11 application had already been substantially argued before the Bombay High Court. He urged that those proceedings should not be stalled merely because another mediation is being attempted.

"You may have said no to mediation earlier but when Court No. 1 of the Supreme Court requests, will you not heed it? Mediation can be successful when stalwarts from either side step in and help," the CJI said in response.

The dispute, involving ancestral assets estimated to be worth over ₹1 lakh crore, has spawned multiple litigations over more than a decade, including civil suits for partition of joint family properties and probate proceedings.

The assets comprise extensive real estate holdings and stakes in several listed Kalyani Group companies, including Bharat Forge and Kalyani Steels, which remain under the management of Baba Kalyani. There is no indication that the litigation has affected the operations of the group’s listed companies.

Sugandha Hiremath challenged a Bombay High Court order of May 4, 2026, which had declined to refer the matter to mediation after Baba Kalyani opposed the move.

Court today observed that mediation often succeeds when senior counsel help clients move beyond litigation and focus on preserving family relationships. The Bench also remarked that all sides were financially well placed and should devote their energies to more constructive pursuits.

To emphasise the value of mediation, the Bench referred to an earlier business-family dispute in which reconciliation was achieved after the elder sibling sought respect rather than wealth. “Such is the miracle and magic of mediation,” the court observed.

The Court has requested Justice L. Nageswara Rao to conduct the mediation and directed the parties to contact him within the day so that the process could commence immediately. The mediation has been directed to be completed within two weeks, after which the matter will be taken up again. 

Case Title: Sugandha Jai Hiremath, Accountant & Anr. v. Babasaheb Neelkanth Kalyani & Ors

Bench: CJI Kant, Justice Bagchi and Justice Mohana

Hearing Date: July 13, 2026

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