Delhi High Court Takes Up Contentious Kapur Family Trust Dispute
The Delhi High Court has stepped into a high-stakes family legal battle, issuing formal notices on Wednesday regarding applications filed by Priya Kapur. Priya, the wife of the late industrialist Sunjay Kapur, is seeking the dismissal of a civil suit initiated by her mother-in-law, Rani Kapur. The suit contains serious allegations that Priya and others orchestrated what is described as a "fraudulent family trust" designed to unlawfully strip Rani Kapur of her rightful estate and inheritance.
Court Sets Timelines for Legal Responses
Justice Mini Pushkarna of the Delhi High Court has established clear procedural deadlines in this complex case. The court directed Rani Kapur to submit her formal response to the dismissal applications within a period of four weeks. Furthermore, Priya Kapur has been granted permission to file a rejoinder to that response, if she chooses to do so, within two weeks after Rani Kapur's filing. This structured timeline aims to move the legal proceedings forward in an orderly manner.
Allegations of Perjury Add Another Layer
In a significant escalation, the court also issued a separate notice to Rani Kapur concerning another application moved by Priya Kapur. This application alleges that Rani Kapur committed the serious offence of perjury—making false statements under oath—which constitutes a fraud upon the court itself. During the hearing, senior advocate Maninder Singh, representing Priya Kapur, emphasized the gravity of perjury, arguing it undermines the judicial process.
Senior advocate Akhil Sibal, also appearing for Priya Kapur, strongly contested the claims in the original suit, labeling several allegations as "utterly false." The applications faced opposition from Rani Kapur's counsel, advocate Smriti Churiwal, who raised questions about their legal maintainability and validity.
Background of the RK Family Trust Dispute
These fresh legal maneuvers occur against the backdrop of a protracted and bitter family dispute centered on the RK Family Trust. In previous hearings, the high court had actively suggested mediation as a potential pathway to resolve the conflict amicably. Justice Pushkarna had previously encouraged the parties to seek a settlement, noting the importance of preserving family relations and preventing disputes over inherited wealth from fostering lasting bitterness.
The core of Rani Kapur's main suit challenges the RK Family Trust Deed dated October 26, 2017. She is seeking the cancellation of the trust and the restoration of assets she claims were unlawfully transferred into it. Rani Kapur alleges the trust was created without her informed consent during a period of vulnerability, following a stroke when she was dependent on her son for managing her affairs. She contends she was made to sign documents without fully understanding their legal implications, effectively excluding her from assets she asserts originally belonged to her.
Conflicting Narratives and Asset Preservation Concerns
The legal narratives presented are starkly contradictory. Senior advocate Vaibhav Gaggar, representing Rani Kapur, has previously expressed urgent concerns about the potential siphoning off of estate assets, seeking court orders for their preservation. He alleged that Priya Kapur acted with haste and engaged in fraudulent conduct in dealing with the estate. This plea found support from some other defendants in the case, including Rani Kapur's daughter and the children of actor Karisma Kapoor.
Priya Kapur has vehemently denied all allegations of wrongdoing. Through senior advocate Akhil Sibal, it was submitted that when Sunjay Kapur assumed control of the family business, it was incurring significant losses. His efforts, it is claimed, revived the company to a point where it could launch a successful Initial Public Offering (IPO) in 2021. Sibal also challenged the legal maintainability of Rani Kapur's suit, arguing that a trustee cannot legally challenge a trust, and indicated that videographic evidence related to the execution and notarization of the disputed documents would be presented to the court.
High-Value Trust and Judicial Scrutiny
The civil suit, which has seen summons issued to Priya Kapur and 22 other defendants, concerns a family trust reported to be valued at several thousand crore rupees, highlighting the enormous financial stakes involved. The court has previously underscored the necessity for full transparency, stating that all pertinent documents—including trust deeds, minutes of meetings, and comprehensive financial records—must be placed before it, with a strict warning that no material facts can be suppressed.
Rani Kapur's allegations extend further, claiming she was the sole settlor, trustee, and beneficiary of earlier family trusts, and that the RK Family Trust was established without her knowledge or consent. She asserts that signatures attributed to her on the trust documents are forgeries and that following her son's death in June of last year, she was left with no share in the estate. She claims a substantial portion of assets went to Priya Kapur, with the remainder allocated to the children.
The Delhi High Court has now scheduled the next hearing in this intricate and high-profile family and financial dispute for March 23, where these complex legal and factual issues will be further examined.
