Supreme Court Intervenes in Kalyani Family Feud, Appoints Retired Justice L. Nageshwar Rao as Mediator For ₹1 Lakh Crore Dispute
(By Syed Ali Taher Abedi)
New Delhi, 13, July, 2026 – The Supreme Court of India has appointed former Justice L. Nageswara Rao to mediate the high-stakes family dispute between Bharat Forge Chairman Baba Kalyani and his sister Sugandha Hiremath.
The conflict centres on assets estimated to be worth over ₹1 lakh crore, a significant development following the Bombay High Court’s earlier refusal to refer the matter to mediation.
The decision was made by a Bench comprising Chief Justice of India Surya Kant, Justices Joymalya Bagchi, and V. Mohana. The Bench successfully persuaded both parties to consider an amicable resolution, leading to the appointment of Justice Rao.
The Supreme Court has requested Justice Rao to act as mediator, with senior counsel from both sides confirming their intent to initiate the mediation process promptly.
This intervention by the apex court comes after the Bombay High Court, in a May 4 judgment, declined to send the dispute to mediation, citing Baba Kalyani’s lack of consent. The underlying legal battle began in 2023 when Sugandha Hiremath and her husband Jaidev Hiremath filed a suit before the Bombay High Court.
They sought specific performance of an alleged family arrangement from June 1994, which, according to the Hiremath’s, stipulated the transfer of shares in Hikal Limited, a listed specialty chemicals company, to Sugandha.
Currently, the Hiremath family and their controlled entities hold approximately 34.84 percent of Hikal, while Kalyani Investment Company Limited and BF Investment Limited hold about 34.01 percent.
The Hiremath’s contend that enforcing the 1994 arrangement would increase their shareholding to approximately 68.85 percent, granting them majority voting rights in Hikal.
The Kalyani side, however, disputes the existence of any enforceable agreement for share transfer and contests the Hiremaths’ interpretation of a handwritten note from 1994 by Neelkanth Kalyani, Baba Kalyani’s father.
The Hikal proceedings are part of a broader legal conflict involving Baba Kalyani, Sugandha Hiremath, their brother Gaurishankar Kalyani, and their respective children. This wider litigation encompasses assets claimed by the Hiremath side to belong to the Kalyani family’s Hindu Undivided Family (HUF), including promoter stakes in prominent companies like Bharat Forge and Kalyani Steels, as well as shares in private companies, land, real estate, jewellery, and bank deposits.
Sugandha’s children, Sameer Hiremath and Pallavi Swadi, have also initiated separate partition proceedings, asserting their rights as coparceners in the alleged Kalyani Family HUF.
The Kalyani faction denies the existence of such an HUF, maintaining that the businesses and properties are not joint family assets available for partition.
Numerous connected partition, property, and probate cases are currently pending across various courts in Mumbai, Pune, Wai, and Karad.
During the Supreme Court hearing, Chief Justice Surya Kant emphasized the importance of mediation, remarking, “You may have said no to mediation earlier, but when Court 1 of the Supreme Court requests, will you not heed to it? Mediation can be successful when stalwarts from either side step in and help in the same.” Justice Bagchi further added that “there cannot be a hostile approach to mediation.” The Chief Justice expressed optimism for a successful outcome, noting, “Sometimes ego is more than the assets. I am sure mediation will succeed.”
Senior Advocates Kapil Sibal, Mukul Rohatgi, Abhishek Manu Singhvi, and Aryama Sundaram represented Baba Kalyani, while Senior Advocates Shyam Divan and Gaurav Pachnanda appeared for Sugandha Hiremath, alongside a team from Karanjawala & Co. The Supreme Court has listed the matter for further hearing after two weeks and has directed the Bombay High Court to halt proceedings on Baba Kalyani’s application seeking rejection of Hiremath’s suit.
