Amarchand Mangaldas Delhi and Mumbai regions, managed by brothers Shardul and Cyril Shroff respectively, have areed to split into two firms by 1 April 2015, confirmed three independent sources to Legally India, as first reported by the Economic Times today.
Cyril Shroff’s side of the firm, which includes the Mumbai, Bangalore, Chennai and Hyderabad offices, is currently planned to be called Cyril Amarchand Mangaldas, according to an authoritative source close to Amarchand Mumbai. The Delhi region includes Kolkata, Ahmedabad and Gurgaon.
Legally India had reported on 22 December 2014 that Amarchand Delhi was in early-stage talks with lawyers in Bangalore and Mumbai to open offices there, in mutual anticipation of a break-up of the firm in the ongoing mediation between the brothers.
In late November a source close to Mumbai had said that the mediation was almost certain to be moving towards a break-up.
Bharucha & Partners managing partner MP Bharucha categorically denied to Legally India the ET’s report that cited a “person with knowledge of the split” saying that Amarchand Delhi “may partner with” Bharucha & Partners “on an ‘arm’s length’ relationship” to start a Mumbai office.
Bharucha said that he had also “categorically denied any relationship, actual or potential” to an ET assistant editor about a tie-up with Amarchand Delhi before publication of the story.
A second authoritative Delhi source also denied any Bharucha-Amarchand tie-up and that there was any truth to the ET’s report that Delhi partner Naval Chopra “will possibly relocate to Mumbai to take charge of the new setup”.
Bharucha & Partners has been representing Amarchand Delhi in the Bombay high court case against his brother Cyril and other Mumbai-based equity partners of the firm. In the 18 November 2014 Bombay high court hearing, Shardul’s counsel P Chidambaram read out parts of the will of the late mother Bharati Shroff, who was the single-largest equity holder in the firm, and who had allegedly disinherited Cyril and his side of the family completely.
In court on 18 November both sides agreed to continue their mediation over the future ownership of the firm and whether Bharati’s equity stake could be willed or whether they were subject to restrictions in a family agreement that envisaged equal division of the firm’s equity between the brothers.
Comments
Chopra Shroff Amarchand . The two firms Cyril Shroff Amarchand and Chopra Shroff Amarchand can be called CSA and compete:) Kian - you should run a prize for getting the right name.
Starting teams will be Cyril AMSS XI- CSS, Viswanathan, SH Bhojani, Ashwath, Yash, Leena, Reeba, Santosh, Amey, Nivedita & Shishir, Extra- VCS.
Shardul AMSS XI- SSS, Pallavi, Jatin, Gunjan, Amit Kumar, Ajoy, Akila, Kalpataru, Ritu Bhalla, Raghubir Menon, & []. Those interested or more knowledgable than me may fill in the blank.
Except in litigation, this looks like a one-sided battle in favour of Cyril AMSS!
(I) Cyril in mumbai;
(II) Cyril in Delhi as head lit;
(III) Shardul in Mumbai.
???
Amarchand & Mangaldas & Shardul Suresh Shroff & Co.
Name of grandfather: Check
Name of father: Check
Name of sons: Check
Old name of the firm: Check
But then, why should anyone be bothered about the correctness of their decision. Like everyone else commenting - i have more wisdom then the two brothers. Which is why they built AMSS and I wrote this comment. I am sure they would have found it to be the right thing to do.
with the split, it doesn't matter what the name is - the Amarchand & Mangaldas & Suresh A. Shroff & Co as we know it will be dead.
It would be interesting to see how much weight each of the brothers can pull.
Crawford Bayley was never quite the same after the exodus back in the 80's !! something similar happening here with AMSS.
Benefits:
A. Zia gets a strong delhi presence which is otherwise non existant while shardul gets a bombay office which can compete with cyril from day one.
B. Both firms financial side of operation is same. Since delhi and bombay books of both firms are different there is not going to be much problem.
C. They both know they are not on the right side of age...starting fresh would mean atleast 10 years before they can even genuinely think of aiming to reach where cyril is in bombay or shardul in delhi.
D. Both face same issues in terms of poor bench strenght atleast from family side (needed to continue the name)
Anyways happy that the front wheel of the cycle just came off...will lead to some consolidation in the market and increase in salary for A-0 which is lowest in the top firm bracket.
Shardul: Mere paas maa hai!
Unless he alone causes it to capsize!!!
Hil is generally crazy but loves his pennies. C is a strategist.
Pity the RCCs - dealing with one amarchand HR is a big pain itself, now they'll have two!
(a) Shardul Amss is going to open and start running an office in Mumbai by April end which will most likely be in partnership with the recent AZB stalwarts. The tie up will get Shardul ready talent and leadership in Mumbai and will give the AZB guys the funds to start with a bang;
(B) existing firms like JSA, Luthra, Khaitan will in the meanwhile identify talent pool they want to keep (whatever means required) and prepare for a heavy attrition and start looking for talent on need basis;
(C) market will see a jump in the salaries by around 20-40 percent depending upon the firm and team;
(D) work crunch will be felt and recognised by mid year as there will be more competition without corresponding rate of increase in work, unless increasing approvals approvals and rate cuts provide financial cushion in the market;
Similar effects may be seen in Delhi