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Delhi High Court : on Thursday formally issued summons to Priya Kapur and 22 other individuals named as defendants in a civil lawsuit initiated by Rani Kapur. The suit seeks the cancellation of the Rani Kapur Family Trust, a financial arrangement said to hold assets worth several thousand crore rupees. While allowing the matter to proceed, the Court declined to pass any immediate protective orders concerning the trust.

Court Limits Proceedings to Issuance of Summons

A single-judge Bench led by Justice Mini Pushkarna clarified that the present stage of the case was confined to issuing summons in the main suit and notices in the associated interim applications. The Court made it clear that it was not inclined to grant interim relief, including an order to preserve the existing status of the trust, without hearing all parties involved.

Noting that the trust in question was not newly constituted, the Bench observed that interim relief could only be assessed after a full response from the defendants. The Court directed the defendants to submit their replies within four weeks, after which the interim application would be considered.

Allegations Raised by the Plaintiff

Senior Advocate Vaibhav Gaggar, representing Rani Kapur, outlined the background of the dispute, tracing developments after the death of industrialist Sunjay Kapur in June last year. He alleged that soon after Sunjay Kapur’s death, Priya Kapur moved swiftly to assume control over the family’s assets.

According to the plaintiff’s counsel, the restructuring of the estate resulted in Priya Kapur receiving close to 60 percent of the assets, while the remaining portion was allocated to children, effectively leaving Rani Kapur without any share. Gaggar questioned the plausibility of Rani Kapur voluntarily relinquishing her entire estate within months of her son’s marriage.

Claims of Lack of Consent and Forged Signatures

The plaintiff further contended that Rani Kapur had historically been the sole settlor, trustee, and beneficiary of earlier family trusts. It was argued that the Rani Kapur Family Trust was created without her informed consent and that the signatures attributed to her on trust-related documents were disputed.

Gaggar told the Court that the estate required immediate safeguarding, asserting that the manner in which the assets were being handled raised serious concerns. He maintained that the documents relied upon by the defendants did not reflect the true intent of the plaintiff.

Defendants Reject Allegations as Baseless

Appearing for Priya Kapur, Senior Advocate Akhil Sibal firmly denied the allegations, describing them as entirely unfounded. He argued that the suit itself was legally untenable and indicated that an application would be filed seeking its dismissal.

Sibal maintained that a trustee could not legally challenge the validity of a trust. He also informed the Court that videographic records of the execution and notarisation of the relevant documents, including signatures, would be placed on record to counter claims of forgery. He opposed any grant of interim relief at this preliminary stage.

Objections From Other Defendants

Counsel representing other defendants also raised concerns regarding the maintainability of the suit and the inclusion of a large number of parties. The Court responded by emphasizing that all material records, including trust deeds, meeting minutes, and financial documents, would need to be disclosed. It cautioned that no relevant information could be withheld from judicial examination.

Grandchildren Join Proceedings to Protect Interests

Advocate Saakaar Sardana, appearing on behalf of Rani Kapur’s grandchildren through her daughter Mandhira Kapur Smith, informed the Court that the grandchildren were beneficiaries under an earlier registered family trust. He submitted that they had been deprived of their inheritance under the current arrangement and were supporting their grandmother’s challenge to safeguard their rights.

Next Steps in the Case

After hearing submissions, the Court ordered that the plaint be registered as a civil suit and directed issuance and acceptance of summons. Notices were also issued in related applications seeking disclosure and production of documents. Actor Karisma Kapoor was appointed as the next friend of minor defendants Samaira and Kiaan Kapur.

The matter is scheduled to be taken up again once pleadings are complete, at which stage the Court will consider the request for interim relief, including the plea for maintaining the status quo over the trust.