Supreme Court Sees 'Happy Resolution' In Sunjay Kapur Family Trust Dispute; Extends DY Chandrachud-Led Mediation

The Bench of Justices JB Pardiwala and K. Vinod Chandran was informed that mediation, being conducted by former Chief Justice of India DY Chandrachud, had progressed substantially, with six sessions already held and all family members participating in detailed discussions.

The dispute involves Sunjay Kapur's mother, Rani Kapur, and his wife, Priya Kapur, over issues concerning the family trust and estate.

"The mediation is continuing. There is one difficulty we are having," Dave submitted.

Senior Advocate Sheryl Trehan, appearing for Priya Kapur, informed the Court that another mediation session had been held just two days earlier.

Taking note of the progress, the Court observed, "The report seems to be positive."

Dave, however, submitted that his client, an 80-year-old woman, was unable to bear the mediation expenses.

"She is 80 years old and does not have the money," he said.

Senior Advocate Abhimanyu Bhandari suggested that the issue could be resolved between the parties themselves.

Dave responded by remarking that the opposite side had "deep pockets" and could continue bearing the expenses.

The Bench indicated that it would resolve the issue itself.

Dave further urged the Court to list the matter before November, submitting that Rani Kapur was not in good health and feared that the proceedings should not be delayed.

Addressing the senior counsel, the Bench remarked, "Who will pay the mediator? I am not talking about your clients. I am asking the senior advocates here."

The Court then directed that the mediation expenses would, for the present, be borne by the RK Family Trust.

"After going through the report, we are very sure that you are all close to a happy resolution," the Bench observed.

Court appreciate progress in Mediation

Recording the preliminary mediation report submitted by former CJI Chandrachud, the Court noted that mediation had so far been conducted over six sessions.

"The learned Mediator has interacted with all members of the family. We are happy to note that the mediation is proceeding quite satisfactorily. We are happy to note that parties are cooperating," the order recorded.

The Court further noted that the parties had engaged in detailed discussions and had agreed to continue mediation for a holistic resolution of all pending disputes.

It also took note of the mediator's assistance from a senior Chartered Accountant during the proceedings, observing that the complexity of the financial issues warranted such assistance.

The Bench also appreciated the personal participation of one of the parties represented by Senior Advocate Mahesh Jethmalani during the mediation process.

Time granted till November 2

The Court accepted the mediator's request to continue the process until November 2, 2026.

"The learned Mediator has made an earnest request to allow time till November 2, 2026. We are sure and very much hopeful, in the manner in which the parties have cooperated, all disputes may get resolved amicably," the Bench observed.

Urging the family members to approach the mediation process constructively, the Court reminded them that prolonged litigation would benefit no one.

"We would like to once again remind the parties that they should go before the mediator with an open mind and heart and see to it that they don't get dragged into long-drawn litigation," the Court said.

Accordingly, the mediation report was taken on record, and the Court directed that the fees of former CJI DY Chandrachud, acting as mediator, shall be paid from the RK Family Trust.

"There should not be any further debate in this regard," the Bench clarified.

Before concluding the hearing, the Court added a word of caution that while the parties remained free to pursue legal remedies if mediation failed, it hoped that stage would never arise.

"If the mediation fails, we will allow you all to proceed in accordance with law. But don't allow that day to come," the Bench observed.

In May, the Court had taken up a fresh application in the ongoing ₹30,000-crore Kapur family dispute, amid allegations that key corporate decisions were being pushed forward despite the matter already being referred to mediation. The Court had observed that mediation must be allowed to proceed without actions that could tilt the balance of the dispute. It had also indicated that it would engage with the RBI on the issue but emphasised that the mediation process must continue uninterrupted for now.

Justice Pardiwala noted that the dispute involved an 80-year-old family member and cautioned all sides to approach the matter with restraint and sensitivity. “Once we referred it to mediation, we expect cooperation. Otherwise, we will decide it ourselves,” the Court said, adding that the goal was to avoid a prolonged corporate battle.