Explainer: Why personal Wills are leading to succession disputes in India Inc?

Sunjay Kapur, chairman, Sona Comstar, passed away on 12 June.

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26 Aug, 2025 12:21

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The Rs 30,000 crore legal tussle within the family of late businessman Sunjay Kapur - the promoters of auto ancillary firm Sona Comstar - has brought to the fore other succession-related legal disputes in India Inc that involves a Will.

Prior to Sunjay Kapur, there have been many corporate inheritance litigations including those involving the families of Baba Kalyani of Bharat Forge, and disputes within the Kirloskar family.

Moneycontrol explains the role of a Will and how it is leading to disputes and litigation in some cases.

A Will and its Relevance in Succession

Wills act like inheritance deeds that fulfill the desires of the testator. There is usually only one executor and one witness to the Will who are considered neutral parties who could vouch for the authenticity of the deed. A Will comes to light only after the passing away of the testator, hence several years may pass from execution of the Will to its disclosure to family. Although there are both registered and unregistered Wills, there isn’t much difference between them, according to experts.

Dispute Over Sunjay Kapur's Legacy

Following the death of business leader Sunjay Kapur, a legal dispute emerged over his assets, with his children from first marriage to actress Karisma Kapoor challenging a Will presented by his widow, Priya Sachdev. At the heart of the controversy is a Will alleged executed by Sunjay before his death, which stated that all assets left behind by Kapur will be inherited by the children of Priya and late Sunjay. This has prompted Karisma Kapoor’s legal team to move Delhi High Court seeking disclosure of the Will along with assets owned by Sunjay Kapur.

Other Will Disputes in India Inc

Previously, a similar challenge to a legal Will were seen in the dispute between Bharat Forge’s Baba Kalyani and sister Sugandha Hiremath. The sister challenged the validity of her father’s Will in court, claiming it was created under coercion and her father lacked the mental capacity to make such decisions. The Finolex Group too is embroiled in a protracted legal battle for control between cousins Prakash and Deepak Chhabria. The dispute revolves around the validity of a gift deed and a Will from the family's patriarch, Pralhad Chhabria.

Why do Wills Cause Dispute?

Legal experts are of the view that everything that has been written in a Will is subject to interpretation. More specifically, Wills are often challenged on the grounds that the testator was coerced by some interest parties to write the Will. However, the testator who is no longer alive, cannot either vouch or deny the allegations of coercion. Then there are also questions that arise due to multiple Wills. In some of the corporate promoter legal battles, each party has come up with their own copy of Will which gives them superior inheritance compared to other parties. Even if a Will is registered formally, the allegations of coercion can always surface, according to legal experts.

What Can Promoters do to Avoid Such Disputes?

Alarmed by protracted legal battles over Wills, several corporate promoters have now started to opt for other alternatives for passing on succession. One popular route is creating a discretionary trust and putting all assets into it. The testator can appoint a trustee and provide a letter of instructions to the Trustee explaining how the assets need to be distributed. Some of the promoters are going even further, since letter of instruction to a Trustee is not an enforceable contract. These promoters appoint corporate trustees (a corporate entity to play the trustee role) and the wishes of testator are incorporated into articles of association of the company making it more enforceable, according to legal experts.

“The rising high-profile disputes in case of a Will is raising questions over its efficacy. This gives us the need to consider other efficacious alternatives like setting up of a private trust. The setting up of private determinate trust is simpler and gives flexibility to the person to retain control over the assets during his lifetime and thereafter ensuring a distribution of same as per his wishes. This may be less prone to challenges as the trust is set up , during the lifetime of the donor person,” Said Amit Singhania, founder, Areete Law Offices.

Legal cases between heirs of Kirloskar family as well as the Finolex family too have seen similar challenges to a Will. According to legal experts, the contents of a Will are always subject to interpretation, especially in terms of whether the executor was coerced into writing it. Most of the Wills come to light after the executor passes away, making it more difficult to prove whether the Will was legitimate or not.