Ex-Supreme Court judge to mediate ₹1 lakh-crore Kalyani family wealth dispute

THe sublime margaret court on mon prescribed its former try, Justice L Nageswara Rao, as mediator to explore the possibility of an amicable settlement in the decades-old property dispute involving members of the Kalyani family, whose ancestral wealth is estimated to be worth over ₹1 lakh crore.A bench comprising Chief Justice of India Surya Kant and justices Joymalya Bagchi and V Mohana asked the two sides to approach Justice Rao during the course of the day so that mediation could commence from Tuesday.The court also directed that proceedings before the Bombay High Court shall remain stayed and posted the matter for hearing after two weeks.The dispute pits industrialist and Bharat Forge chairman Baba Kalyani against his sister Sugandha Hiremath over the distribution of the Kalyani family’s ancestral wealth, promoter holdings in listed companies and other family assets.Persuading the parties to give mediation another chance, CJI Kant remarked that even though an earlier attempt had failed, the intervention of the Supreme Court could make a difference.“You may have said no to mediation earlier, but when Court No. 1 of the Supreme Court requests, will you not heed to it? Mediation can be successful when stalwarts from either side step in and help in the same…there cannot be a hostile approach to mediation,” it remarked.Senior advocates AM Singhvi and Aryama Sundaram appeared for Baba Kalyani and other respondents, while senior advocate Shyam Divan represented Hiremath.The bench proposed the name of Justice Rao to facilitate negotiations.“We will ask Justice L Nageswara Rao to devote some time to this and hear both the sides,” it said.Recording the consensus, the court said in its order: “Counsel were persuaded to explore possibility of amicable settlement. We request Justice L Nageswara Rao to act as a mediator. Senior counsels assure that they will contact Justice Rao today so that mediation can start from tomorrow.”The dispute concerns the Kalyani family’s Hindu Undivided Family (HUF) assets, estimated at more than ₹1 lakh crore, comprising family-owned properties, investments and promoter interests in several listed Kalyani Group companies, including Bharat Forge.The litigation involves siblings Baba Kalyani, 77, Sugandha Hiremath, 74, and Gaurishankar Kalyani, 72, along with other family members. Multiple proceedings have been pending for more than a decade over the wills of their parents, Dr Neelkanth Kalyani and Sulochana Kalyani, as well as the implementation of family arrangements governing the distribution of assets.The present proceedings arise out of a suit seeking specific performance of a 1994 family arrangement.The Supreme Court last month suggested that the warring siblings explore mediation to resolve their long-running dispute relating to ancestral wealth and promoter stakes in listed companies.The latest order comes after the Bombay High Court, in May, declined to refer the matter to mediation after one side opposed the proposal. The high court held that mediation under Indian law is founded on consent and cannot be imposed merely because the dispute is between members of the same family. At the same time, it underlined that the parties were senior citizens and that the family dispute deserved an expeditious resolution instead of prolonged litigation.Attempts at mediation before a mediator in Pune had earlier failed to yield a settlement. Sugandha Hiremath had thereafter sought mediation before the Bombay High Court as part of her efforts to arrive at a comprehensive family settlement.