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

The Supreme Court has appointed former judge L Nageswara Rao as a mediator to facilitate an amicable settlement in a long-standing property dispute within the Kalyani family, whose ancestral wealth is valued at more than ₹1 lakh crore. The court's decision came on Monday, with a bench comprising the Chief Justice of India directing both sides to engage with Justice Rao starting Tuesday.

The dispute primarily pits Bharat Forge chairman Baba Kalyani against his sister Sugandha Hiremath. It centers on the division of the family's vast ancestral wealth, including promoter stakes in various listed Kalyani Group companies and other family assets. The case has seen multiple legal proceedings spanning over a decade, concerning the wills of their parents, Dr Neelkanth Kalyani and Sulochana Kalyani, and the implementation of family arrangements for asset distribution.

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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.

Chief Justice of India Surya Kant encouraged the parties to reconsider mediation, acknowledging a prior failed attempt. "Mediation can be successful when stalwarts from either side step in and help in the same…there cannot be a hostile approach to mediation," the bench remarked, emphasizing the potential impact of the Supreme Court's direct involvement.

Senior advocates representing both Baba Kalyani and Sugandha Hiremath assured the court that they would contact Justice Rao promptly. The court ordered a stay on proceedings before the Bombay High Court and scheduled further hearings in two weeks. The current litigation stems from a suit seeking the specific performance of a 1994 family arrangement, highlighting the deep roots of the conflict over the family's Hindu Undivided Family (HUF) assets.

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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.