The Supreme Court on Monday appointed its former judge, Justice L Nageswara Rao, as a 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 at more than $100 million. $1 lakh crore.
A bench comprising Chief Justice of India Surya Kant and Justices Joymalia Bagchi and V Mohana asked both sides to communicate with Justice Rao during the day so that mediation can begin from Tuesday.
The court also ordered that the proceedings before the Bombay High Court be kept in abeyance and adjourned the matter for hearing after two weeks.
The dispute between industrialist and Bharat Forge chairman Baba Kalyani and his sister Sugandha Hiremath is over the distribution of the Kalyani family’s ancestral wealth and promoter holdings in listed companies and other family assets.
By convincing the parties to give mediation another chance, Kant noted that although the previous attempt had failed, the Supreme Court’s intervention could make a difference.
“You may have said no to mediation earlier, but when the Supreme Court No. 1 asks, do you not respond to it? Mediation can be successful when courageous people from either side step in and help in the same… There cannot be an adversarial approach to mediation,” he said.
Senior advocates A M Singhvi and Ariyama Sundaram appeared on behalf of Baba Kalyani and other respondents, while senior advocate Shyam Devan represented Hiremath.
The bench suggested Justice Rao’s name to facilitate negotiations.
“We will request Justice L Nageswara Rao to devote some time to this matter and listen to both sides,” the statement read.
“Advocates have been persuaded to explore the possibility of amicable settlement. We request Justice L Nageswara Rao to act as mediator. Senior counsel confirm that they will contact Justice Rao today so that mediation begins from tomorrow,” the court said in its order, while recording the consensus.
The dispute concerns the assets of the Kalyani Hindu Undivided Family (HUF), which is estimated at more than $1 lakh crore, includes family-owned properties, investments and promoter interests in several listed Kalyani group companies, including Bharat Forge.
The suit includes 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 regarding the will 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 from a claim seeking specific enforcement of a 1994 family arrangement.
The Supreme Court last month suggested that the warring siblings explore mediation to resolve their long-standing dispute related to ancestral wealth and promoters’ stakes in listed companies.
The latest order comes after the Bombay High Court, in May, refused to refer the matter to mediation after one party opposed the proposal. The Supreme Court held that mediation under Indian law is based on consent and cannot be imposed merely because the dispute is between members of the same family. At the same time, she stressed that both parties are elderly and that the family dispute deserves a quick resolution instead of prolonged litigation.
Mediation attempts before the mediator in Pune had earlier failed to reach a settlement. Sugandha Hiremath then sought mediation before the Bombay High Court as part of her efforts to reach a comprehensive family settlement.
