Supreme Court Appoints Retired Justice L. Nageswara Rao to Mediate Kalyani Family’s ₹1 Lakh Crore Dispute
In an effort to resolve one of India’s largest and longest-running family business disputes, the Supreme Court has appointed former Supreme Court judge Justice L. Nageswara Rao as mediator to facilitate negotiations between Bharat Forge Chairman Babasaheb (Baba) Kalyani and his sister Sugandha Hiremath. The dispute, involving family assets estimated to be worth over ₹1 lakh crore, spans promoter stakes in listed companies, ancestral properties, landholdings and other family assets.
A Bench comprising Chief Justice Surya Kant, Justice Joymalya Bagchi, and Justice V. Mohan referred the matter to mediation after hearing senior counsel representing both sides. The Court requested Justice Rao to explore the possibility of an amicable settlement and granted the parties one final opportunity to resolve their differences outside prolonged litigation.
Recognising that parallel proceedings could undermine the mediation process, the Supreme Court requested the Bombay High Court to defer hearing Baba Kalyani’s application seeking rejection of the civil suit filed by the Hiremath family under Order VII Rule 11 of the Code of Civil Procedure until the mediation exercise is completed. The apex court has listed the matter for further consideration after two weeks.
The dispute has been pending for several years and centres on the division of ancestral wealth and ownership interests in the Kalyani Group, which includes flagship companies such as Bharat Forge and other listed entities. The litigation involves multiple branches of the Kalyani family and has witnessed proceedings before civil courts, the Bombay High Court and the Supreme Court. Previous attempts at mediation before the Supreme Court and a district court in Pune reportedly failed to produce a settlement.
During the hearing, Baba Kalyani opposed another round of mediation, contending that earlier settlement efforts had been unsuccessful and had merely delayed adjudication. He also submitted that repeated reports of settlement negotiations had caused uncertainty and adversely affected investor confidence in group companies. Despite these objections, the Supreme Court considered the magnitude of the dispute and the public interest arising from the involvement of listed companies, and decided that one final attempt at mediation was warranted.
The Court’s intervention comes after the Bombay High Court had earlier declined to refer the parties to mediation, holding that mediation under the Mediation Act, 2023 is voluntary and cannot be imposed where one party is unwilling. By appointing Justice L. Nageswara Rao, the Supreme Court has sought to revive the possibility of a negotiated resolution while temporarily pausing related proceedings. Whether the mediation succeeds could determine the future of one of India’s most significant corporate family disputes and avoid years of further litigation involving substantial business and shareholder interests.
