Shardul Shroff vs brother in ET interview & tells (sorta) why he sued: ‘Preposterous suggestion’ that I influenced will

Shardul Shroff, the Delhi managing partner of Amarchand Mangaldas who has been involved in a public Bombay high court battle with his Mumbai-based brother and co-managing partner Cyril, told the Economic Times in an exclusive interview that it’s a “preposterous suggestion” that he could have influenced his mother’s will that disinherited Cyril and his family.

He also claimed that he had offered his brother half of the equity in one partnership firm but the management committee’s later decision to split the late mother’s equity 50/50, forced his hand to approach the court.

Legally India had reported on Tuesday, the day of the Bombay high court hearing, that Cyril’s counsel Iqbal Chagla had said in court that Cyril would file an affidavit that Shardul was “deeply involved” in the making of their mother’s controversial will.

Shardul had not responded for comment when requested by Legally India, but has now responded to the ET:

I think this is the most preposterous suggestion that they have put out. Please don’t forget that my mother had been a lawyer since 1955. She had been extremely independent, a highly acclaimed lawyer and had tremendous experience in law and writing of wills. She herself would have written at least 50 wills on her own for her clients and friends…the question of influencing her doesn’t arise at all. She was the co-founder of the firm. In our partnership deed, there is a very special right which is given to her because of her contribution to the firm.

Shardul also told the ET that on 20 September he had offered Cyril a 50 per cent stake in the Hiralal Shroff & Co partnership and in Amarchand Towers Private Limited (ATP), which owns the Delhi office and properties.

“Despite my mother’s will, I made a written offer,” he told the ET.

But he added that the 10 November management committee resolution, that voted to split Bharati’s equity equally between Shardul and Cyril and was reported by Legally India on Tuesday, forced his hand, despite a mediation process between the parties assisted by others, such as AZB & Partners managing partner Zia Mody and prominent industrialists:

So, because of the precipitated action that they took on October 16 and November 10, [discussions] came to an abrupt halt because they cancelled my mother’s property and issued shares to themselves. So you can’t have a mediation and the intermeddling in the legal sense at the same time. You can’t cancel a dead person’s property, and so the process which was moving along the line with the help of a facilitator came to an end.

Shardul also said that “peace has to be given a chance” and he and Cyril had not ever spoken of “splitting” the firm in two. Legally India had reported yesterday that a highly-placed Mumbai source who could not be named, privately expected mediation to move towards a break-up of the firm along Delhi and Mumbai lines.

Cyril, commenting to the ET about Shardul’s interview said that he was “deeply surprised and anguished” that Shardul was “making matters worse by speaking to the media on matters that are sub-judice. I am not an ordinary litigant. I am a lawyer. I will say what I have to in my affidavit. I am serious about the mediation and do not want to derail that process in anyway.”

Comments

help 21 Nov 2014, 04:35
+3 -0
I am a bit confused. If shardul offered 50 per cent to cyril, wasnt the management committees decision also that brothers will split 50-50,? Why did shardul have to file a suit then? Or is is that Sharduls offer to cyril was that cyril will "purchase" the 50% stake from shardul and then the MC said it will be split 50-50 without any further consideration? Could someone please clarify?
kianganz 21 Nov 2014, 04:46
+0 -2
I believe that Shardul offered Cyril the option to buy the stake, yes.

However, after the management committee (MC) meeting, half of Bharati Shroff's stake was cancelled, with new units issued and paid for by Cyril and Vandana Shroff into the firm, as far as I can tell.

The other half of Bharati's stake is still in the name of her estate, as Shardul is contesting the MC decision and has not taken up the option to purchase them.

This is obviously only one side of the story though, but it does seem that there is more at play here than simple offers/acceptances/refusals.

We'll be publishing more details shortly...
help 21 Nov 2014, 05:10
+1 -0
Thanks Kian. But here is amother query...does that mean in the codicil Shardul had to again purchase bharati shroffs stake or it was directly bequeathed to him without amy such condition? If he had to purchase again, then clearly the MCs decision was blatantly unfair.
kianganz 21 Nov 2014, 05:13
+2 -0
Yes, possibly.

Under the original will Shardul and Cyril BOTH had to buy her units, with proceeds going to charity.

Under the codicil, Cyril was disinherited and Shardul was given everything - I am not sure if it specifically said anything about purchase, etc.

I think some of that is also a bit murky in the fog of war of allegations and counter-allegations... We're working on getting the full story out shortly...
Court Witness 21 Nov 2014, 05:21
+2 -1
Having heard the relevant portions of the Will / Codicil being read in Court I understand even Shardul had to purchase the equity under the Codicil and the funds would go to the named charity / trusts.
The Article Says 21 Nov 2014, 05:08
+8 -2
...that he offered Cyril 50% of Amarchand Towers Pvt Ltd and the Hiralal Shroff partnership. Not 50% in ALL the partnerships or at the "flagship partnership". Whereas the MC decision perhaps pertained to Bharti Shroff's units at the "flagship partnership"? That's what I can make of it.
help 21 Nov 2014, 04:50
+3 -2
Some sort of split is imminent and in fact in the interests of all concerned it should happen. If they continue the friction will always be there..then imagine what will happen when the next generation steps in!
watson 21 Nov 2014, 05:15
+5 -10
Its strange. Shardul claims bharti shroff was a very independent lady etc etc and yet from her own admission in the will it looks like she couldnt stand up to react to the alleged mistreatment meted out to her by cyril and family for almost 11 years !! Clear contradiction in the two positions.
Sherlock 21 Nov 2014, 06:15
+29 -2
Watson is obviously not a mother and will never understand the issues that a mother would have to go through after the death of her husband. The only people she can take comfort and love from is her children. It is a sorry state of affairs of people commenting on her rather than looking at the fact that she may have indeed been treated unfairly. If the Mumbai family has actually ill-treated her, it is almost animal-like behaviour to run after the money. All they care about is the equity and the money when not even 3 months have passed since her demise. Sorry state of affairs.
Rex 21 Nov 2014, 11:03
+51 -3
Who would've thought that she'd be treated worse than an AMSS associate!
Agent Kian 21 Nov 2014, 17:01
+22 -1
well I wouldn't call it worse. From what I have read till now, I would say comparable. At least she wasn't made to hold placards or help people park their cars as valet for the daughters shroffs wedding.
Watson 23 Nov 2014, 12:22
+0 -3
Ive seen a lot of scenarios dear sherlock and let me elucidate my point. I have nothing against the late bharti shroff and beleieve the dead shud be respected and allowed to rest in peace. Ive seen domestic issues in families where the old parent under extensive emotional influence and chaabi bharo-ing from one child, starts to view the other child as a monster. Day to day issues are blown out of proportion. If the old parent is strong and independent then their wills are beyond doubt. However if they are old and rely emotionally exvessively on one child, and their thought and actions may be influenced. Things are grey when it comes to human relations. All I am saying is that the will of an elder person cannot be the gospel truth.r
Watson 23 Nov 2014, 12:28
+1 -1
To add to my previous note. I think either side of family running after money is a sad thing. When siblings forget they are siblings and fued over money.. its very very sad. What I do find odd, and I say that again, is when educated lawyers choose to suffer mistreatment when they do have other children as well. Anyway. I dont realy care where this dispute goes. Its just realy sad this kind of things happen. Best to donate it all and walk away.
Byomkesh 24 Nov 2014, 05:46
+0 -0
Shwerlock is obviously a mother
La student 21 Nov 2014, 05:56
+0 -1
What is Hirarlal Shroff partnership?
La teacher 21 Nov 2014, 06:53
+34 -2
Students: Hiralal Shroff is a new law firm where you can mass email your internship applications.
Batman 21 Nov 2014, 09:04
+5 -1
Hirarlal Shroff is the dark side AMSS partnership
Legally Bhindi 21 Nov 2014, 10:14
+3 -7
In 1966, Shardul was employed by Trilegal. Then they sacked him. This is all as a result of that event. Will be revealed in the course of the collective meditation by Kampani, Salve and Whatshisname.
Guest 21 Nov 2014, 11:24
+2 -4
Was Trilegal even in existence?
Just Curious 21 Nov 2014, 11:54
+8 -2
Really surprising you remembered Kampani, Salve but an Justice B N Srikrishna, an Ex- SC judge is a "whatshisname" for you.
ass 23 Nov 2014, 17:27
+1 -0
yeh sri krishna commission wala?
Guest 26 Nov 2014, 14:10
+2 -0
Seriously.
BB 21 Nov 2014, 13:35
+7 -6
Kian please give us the latest on whether foreign law firms will now be permitted in India. If AMSS splits, one of the brothers might tie up with a foreign law firm.
KBC 22 Nov 2014, 11:32
+3 -7
Sad that sss is leveraging trial by media. By giving quotes during the court proceedings. Ofcourse he needs some reputation damage control given allegations of effectively frauding his mother's will and shoving it to Cyril. Maybe the truth can be resolved in an 'audience poll'. Given it's a highly informed audience we have here. Lock kar liya jay!
duh 24 Nov 2014, 15:04
+2 -1
@KBC did you miss ET the next day where the CSS camp made equally inflammatory statements- at least SSS gave an interview himself- CSS used a "source close to the matter who cannot be named"
Guest 24 Nov 2014, 06:54
+11 -2
Whatever the outcome of this circus, Cyril's reputation will take a big beating. While nobody expected him to be a saint, the public revelation of his mother's will citing her deep anguish at being mistreated and practically locked up in her Mumbai home will be a stigma that will forever follow him. [...]