Supreme Court Appoints Mediator for High-Profile Family Dispute
In a significant legal development, the Supreme Court of India has appointed retired Justice L Nageswara Rao to mediate a high-stakes family dispute involving Bharat Forge Chairman Baba Kalyani and his sister Sugandha Hiremath. The assets in contention are valued at over ₹1 lakh crore, underscoring the complexity and importance of the case.
Court’s Decision and Mediation Process
The Supreme Court’s decision was rendered by a bench comprising Chief Justice of India (CJI) Surya Kant, alongside Justices Joymalya Bagchi and V Mohana. The court persuaded both parties to consider an amicable settlement and subsequently entrusted Justice Rao with the role of mediator. The bench explicitly stated, “We request Justice L Nageswara Rao to act as a mediator.” Senior counsels for both parties assured the court of their cooperation, indicating that they would reach out to Justice Rao promptly to initiate the mediation process.
The Supreme Court has scheduled the next hearing in two weeks and has instructed the Bombay High Court to halt proceedings on Baba Kalyani’s application to dismiss Hiremath’s suit under Order VII Rule 11 of the Code of Civil Procedure.
Background of the Dispute
The case traces back to a judgment by the Bombay High Court on May 4, which declined to send the matter for mediation due to Kalyani’s lack of consent. Sugandha Hiremath and her husband Jaidev Hiremath had filed the original suit in 2023, seeking specific performance of a purported family agreement from June 1994. This agreement allegedly required the transfer of shares in Hikal Limited, a specialty chemicals company, to Sugandha. Currently, the Hiremath family controls approximately 34.84% of Hikal, while entities affiliated with Kalyani hold around 34.01%.
The Hiremaths assert that enforcing the 1994 agreement would elevate their holdings to 68.85%, granting them majority control. However, Kalyani contests the existence of any enforceable agreement and disputes the interpretation of a note written by Neelkanth Kalyani, the siblings’ father, following a family meeting in 1994.
More Read
Broader Implications and Legal Proceedings
This dispute is part of a broader conflict involving Baba Kalyani, Sugandha Hiremath, their sibling Gaurishankar Kalyani, and their descendants. The litigation covers claims to assets such as shares in Bharat Forge, Kalyani Steels, and other properties purportedly belonging to the Kalyani family’s Hindu Undivided Family (HUF). Sugandha’s children have also initiated partition proceedings, claiming rights within this alleged HUF, which the Kalyani faction denies exists.
Currently, several related cases concerning partition, property, and probate are underway in various courts across Mumbai, Pune, Wai, and Karad.
Supreme Court’s Remarks and Future Prospects
Earlier mediation efforts at both the Supreme Court and Pune District Court had faltered, leading to Bombay High Court Justice Rajesh S Patil’s rejection of the Hiremaths’ mediation request. However, during the latest Supreme Court hearing, CJI Surya Kant encouraged Kalyani’s counsel to reconsider their stance against mediation. He emphasized, “Mediation can be successful when stalwarts from either side step in and help in the same.” Justice Bagchi supported this sentiment, noting that “there cannot be a hostile approach to mediation.” The CJI expressed optimism that mediation would prevail, stating, “Sometimes ego is more than the assets. I am sure mediation will succeed.”
More Read
Legal Representation
Senior Advocates Abhishek Manu Singhvi, Kapil Sibal, and Aryama Sundaram represented Kalyani, supported by Karanjawala & Co, led by Senior Partner Ruby Singh Ahuja. On the opposing side, Senior Advocate Shyam Divan represented Hiremath.
