The family dispute involving Bharat Forge Chairman Baba Kalyani and his younger sister Sugandha Hiremath has flared up once again. The latest salvo has been fired by Baba Kalyani’s nephew, Sameer Hiremath and niece Pallavi Anish Swadi.
Both filed a suit on March 20 in the Pune Sessions court against Baba Kalyani and his family, seeking partition of Kalyani’s family assets. They include shares of several listed and private limited companies which in turn hold a major chunk of the listed companies under the Kalyani Group. The duo said they have a share in Kalyani Hindu Undivided Family (HUF) assets.
Several assets owned by the group, which is spearheaded by Baba Kalyani, are sought to be partitioned. The petition says as all these businesses were commenced and the investments were made from the nucleus of the joint family headed by Annappa Kalyani (father of Neelkanth Kalyani and grandfather of Baba Kalyani), they constituted the properties of the joint family. The petition said Annappa N Kalyani (ANK), who was a successful businessman and agriculturist was the “Karta of and manager of the Joint Hindu family, comprising himself, his first wife namely, Parvati Annappa Kalyani, second wife Akutai Annappa Kalyani and his son Neelkanth Annappa Kalyani.
According to the siblings, Baba Kalyani has been enjoying and using the assets alone and has not been sharing any information about the assets in the HUF.
It is the second such suit filed by Kalyani’s extended family. In 2014, his niece Sheetal Kalyani sued him and sought a partition. She had moved the court seeking her share in the family’s holdings and assets. The suit is pending before the Pune court. Sheetal is Baba Kalyani’s brother Gaurishankar’s daughter.
In 2023, Sugandha Hiremath and her husband, had moved the Bombay High Court against Baba Kalyani for not honouring a Family Arrangement and failing to transfer shares of Hikal to the Hiremath family. The case is pending before the court.
The latest suit filed by the Hiremath siblings noted that everything that Kalyani owns is part of HUF. The businesses of the Joint Family were either in the form of companies, or proprietorship concern or partnership firms and also like shareholdings in different companies. The suit added that his son Neelkanth Kalyani actively participated in the family business.
“It is evident that ANK and NAK earned a fortune over their lifetime, and further that these monies always formed a part of Kalyani Family HUF,” the plaint said.
The suit has listed several listed and private limited companies, firms, proprietorship firms, shares of other companies, immovable assets, bank accounts and properties as part of the assets owned by the undivided family. It includes Bharat Forge, Kalyani Steels Limited and Kalyani Consultants.
After ANK’s demise in 1954, his son, Neelkanth Annappa Kalyani (NAK) started managing the Joint Family, its properties as well as the Joint Family business of the Joint Family. Neelkanth Kalyani contributed significantly to the growth of industry and enterprise in India. After Neelkanth’s health deteriorated in 2011, Baba Kalyani became the Karta of the HUF.
The relationship between the Hiremaths, who control Hikal, and Baba Kalyani soured after the death of their mother, Sulochana Neelkanth Kalyani in February 2023.
The suit stated that after the demise of Sulochana, Baba, being the Karta of HUF, instead of giving effect to the various wishes and writings that have been executed from time to time, refused to have any further discussions. Their apprehension was that Baba Kalyani will take over all the assets of the Kalyani Family HUF and deprive them of their respective shares.
A significant part of the joint family funds have been utilised over the years to invest and form several entities, purchase assets and create further substantial assets and wealth. Baba Kalyani alone does not and cannot have a right to the same, states the suit.
The siblings have asserted their right by stating that they are coparceners in the Kalyani Family HUF by the 2005 Amendment to Section 6 of the Hindu Succession Act, 1956. Accordingly, they are within their rights to seek a partition of the Kalyani Family HUF in their respective rights as coparceners of the Kalyani Family HUF.
The Hiremath siblings have attached a list of assets that they believe form part of the joint family property and have sought further details about other undisclosed assets from Baba Kalyani.
The suit has asked all the respondents which include Baba Kalyani, his son Amit, Gaurishankar Kalyani (Baba’s younger brother), Viraj (Gaurishankar’s son), Sheetal (Gaurishankar’s daughter), and Sugandha (their mother) to make full disclosure about properties and assets acquired from the family nucleus and their current position.