“It would not even be wise to have a pretence in such a situation. Even if they do agree to go on together for a while, it would not be more than six months that they would be fighting again. Sometimes to part ways is the best,” said the source, who has close knowledge of the current state of the dispute but declined to be identified because the matter was sub judice.
“Maybe time will prove to be a good healer and on a personal front things will improve and restore to normalcy if they work separately. But the split of the firm in two firms seems the only way out with the direction in which the mediation is headed now.”
Several months of protracted mediation attempts between the brothers preceded Tuesday’s Bombay high court hearing, with unsuccessful mediators between the brothers having included HDFC chairman Deepak Parekh, Aditya Birla Group chairman Kumar Mangalam Birla, as well as AZB & Partners Mumbai managing partner Zia Mody.
Mody did not respond to an email seeking comment.
In court the parties eventually agreed on three new mediators to oversee their talks until 31 December: senior investment banking guru Nimesh Kampani, Shardul’s nominee ex-Supreme Court judge Justice BN Srikrishna, and Cyril’s nominee of senior counsel Harish Salve.
In Justice RD Dhanuka’s court on Tuesday, Shardul’s counsel P Chidambaram read out the contents of the will of the brothers’ late mother, Bharati Suresh Shroff, alleging ill treatment and neglect by Cyril during her lifetime, allegedly citing that as one of the reasons she disinherited the Mumbai side of the family in her codicil prepared in January 2014. It is understood that the mother prepared and video graphed the holographic will at the Deutsche Bank office in Mumbai.
Senior counsel Iqbal Chagla mentioned before the court that there has been suppression of material facts in the case and that they would file their reply before the court detailing how Shardul was “deeply involved” in making of the will.
According to several Mumbai sources, a number of Amarchand lawyers had blacked out their Blackberry or other instant messaging profile pictures as a sign of the prevailing mood in the firm, with one source calling it a “black day in the history of the firm”.
If a split were to happen, the logistics of disentangling multiple partnership firms, profit shares and books of business will not be easy. One Mumbai source did not believe that a split after mediation could include any non-compete provisions as had occurred in the will dividing the Ambani conglomerate between two brothers, and that therefore the two potential Shroff firms could compete for work and talent head as any other rivals.
Managerially and structurally, the around 700-lawyer and 80+ partner-firm is split between two regions – with the Mumbai region including the Bangalore, Chennai and Hyderabad offices, and Delhi containing Kolkata, Ahmedabad and Gurgaon.
Shardul and Pallavi Shroff in Delhi did not respond to an email seeking comment; Cyril and Vandana Shroff in Mumbai declined to comment when contacted.x
Comments
Hahahah! Cry me a river,ffs.
If I were a partner though, before quitting, I'd wait and see where the chips lie. In a split firm there could be plenty of new career opportunities for instance...
Scooter, why lie? Everyone knows that you are a steno! A lawyer wont have that much of time.
They will split. Mumbai will be Amarchand Mangaldas and Delhi will be Suresh A. Shroff & co. Shardul will keep his mothers estate with the sole exception of rights in the Mumbai bungalow (which is where Cyril and family stay).
Baniya buddhi zindabad!
Reminds me of those dark days when V.P Singh, Deve Gowda et al. became PM as there was no forec in Congress and BJP then. But, thankfully, KCO will never be seen close to the shadow of Rank 1.
Nor hell a fury like a woman scorned
- Some salaried partners will make equity-partners much sooner
- Competition will bring more partner-attention and hopefully better quality service on the table
- Collectively, both firms will have better market-reach - good for keeping their legacy alive
- Competition will bring more transparency within the management - to retain the best talent during turbulent times, with boutique firms offering much better salaries
- a spilt is a great opportunity for the management of both firms to review their goals and look back at their mistakes. Partnership structures/agreements will be made fool-proof and better geared for avoiding such exigencies
- both firms will have to rebuild certain practice-groups to make up for the void- lead to more constructive-employment
Cons:
- Scope for restructuring within some non-revenue generating practice-groups - non-revenue generating lawyers would loose their jobs. A better thing to happen to them over rusting.
- Top tier law firms will have another major competitor to race with
- Boutique firms like TTA, PLATINUM, PHOENIX, P&A, SNR and A&M will lose significant market-share (looking at a 5 year perspective)
- Both firms will lack significant presence in one of India's 2 major metropolitan cities - Mumbai and Delhi - though only for a while
- Two independent voices against foreign law firms entering India
- Confusion in how the market will percieve these new firms
- Confusion among law-grads between the two new alternatives
Scope for restructuring within some non-revenue generating practice-groups - non-revenue generating lawyers would loose their jobs. [/quote]
"lose" their job. Otherwise, decent analysis.
Same questions for Shardul Shroff, and Darius Khambatta.
I blame several years of self entitled firm slaving for any venom spewing I might engage in. What is your excuse? Or were you just describing yourself in your comment?
(I am sorry. I just really hate working Saturdays).
A quote from Mein Kampf - The Truth behind why AMSS & AZB are better than KCO co-authored by Lyril, Hildul and Kia.
Split - a boon in disguise?