Sona BLW dispute: SC grants interim relief to Rani Kapur
What's the story
The Supreme Court has granted interim relief to Rani Kapur in the ongoing dispute involving the promoter family of Sona BLW Precision Forgings Limited. The court has also directed all parties to participate meaningfully in mediation. The case centers around Raghuvanshi Investments Pvt Ltd (RIPL), a major shareholder in the Sona BLW promoter group. Justice JB Pardiwala questioned why the parties were back in court when mediation had already been initiated.
Control concerns
My shareholding is put in trust behind my back
Senior Advocate Navin Pahwa, representing Rani Kapur, claimed that an RIPL board meeting notice was issued on May 8. He alleged attempts were being made to change the board's control by inducting two more directors into the company. Pahwa also claimed that Rani Kapur's shareholding had been transferred into a trust without her knowledge, saying, "My shareholding is put in the trust behind my back."
Regulatory implications
Proposed appointments were per RBI directions: Other side
Senior Advocate Kapil Sibal, representing the other side, said the proposed appointment of independent directors was on account of directions from the Reserve Bank of India (RBI). He told the court that "The RBI conducted an inspection and said two independent directors by May 21." However, the bench asked him to inform RBI about their decision not to discuss certain items during mediation proceedings.
Meeting mandate
Court allows mediation to continue
The court noted its concern over the upcoming board meeting of RIPL, scheduled for May 18. It said items 5, 6, and 25 should not be discussed during this meeting as they relate to the appointment of independent directors and changes in authorized signatories for company bank accounts. However, it did not stay the entire board meeting while allowing mediation proceedings to continue.
Legal advice
Justice Pardiwala warns parties against dragging litigation
Justice Pardiwala warned parties against dragging litigation, saying, "If you all are not interested in mediation, then we will not waste any further time, we will hear the matter on merits and finish it off." He made an emotional appeal for reconciliation, stressing that Rani Kapur is an 80-year-old woman and there has to be a will to settle this matter. The mediation will continue for two months with an interim report due before the next hearing on August 6.