The Delhi high court has “prima facie” and “tentative[ly]” stayed the termination of senior partner Mohit Saraf’s termination from L&L Partners, the partnership he had co-founded, by managing partner Rajiv Luthra.
Delhi high court Justice V Kameswar Rao ordered the following relief:
72. In view of my above discussion, prima facie the termination of the petitioner from partnership by the respondent in terms of email dated October 13, 2020 being in violation of the Deed and the Partnership Act, keeping in view the mandate of Section 12 of the Partnership Act, where a partner has the right to take part in the conduct of the business and also keeping away the petitioner from the partnership business shall be to his prejudice, if he finally succeeds in the prospective arbitration proceedings, I direct that there shall be a stay of the operation of the email dated October 13, 2020 issued by the respondent terminating the petitioner from the partnership till the conclusion of the prospective arbitration proceedings.
The court added:
73. It is made clear that the aforesaid is a tentative / prima facie view.
74. The petition is disposed of. No costs.
Update 13:40: We understand that Rao orally also noted in court that the judgment would be kept in abeyance until Friday (presumably to allow the filing of an appeal).
Update 19:14: The order staying the operation of the judgment until 22 January 2021, on request of Luthra’s lawyers, has been uploaded now. It notes:
Vide the judgment pronounced today, I have decided OMP (I) (COMM) 339/2020 whereby I have stayed the operation of the email dated October 13, 2020 issued by the respondent.
After I pronounced the judgment, a request is made by Ms.Pooja Dhar, learned Counsel for the respondent, for staying the operation of the impugned judgment for a period of one week.
Learned counsel appearing for the petitioner has opposed the said request.
Noting the submissions, it is directed that the operation of the direction, given in the judgment, shall remain in abeyance till January 22, 2021.
Delhi office sealed
In may be perhaps a coincidence but could turn out to potentially be a strategically valuable one, late yesterday (Sunday, 17 January), just before 6pm, the firm’s vice president of administration sent an email to all staff of the Delhi headquarters, noting:
Dear All,
Happy New Year to you and your families.
This is to inform you that our offices were inspected earlier today and we have been advised that it is extremely important to completely Sanitize and Fumigate the premises before we plan to open our offices at the permitted capacity.
Therefore, a thorough Sanitization & Fumigation is being carried out in all our offices on the 1st, 8th and 9th floors today, after which the premises will be sealed for 3 days, starting tomorrow, Monday, January 18 to Wedesday, January 20, 2021.
Thereafter on Thursday, January 21, the office boys will carry out a deep cleaning exercise of the entire office, to make ready for full operations w.e.f. Friday, January 2021.
All are hereby, therefore, informed to kindly work from home for the next 3 days i.e., Monday, January 18 to Wednesday, January 20, 2021, and partially resume office form Thursday, January 21 onwards.
So, while the Delhi high court has ordered arbitration, this might give Luthra an additional three to four days in which to approach the Supreme Court for a challenge of this order.
That said, the order would require Saraf to re-gain access to his email.
We have reached out to Rajiv Luthra yesterday evening for comment whether the timing was related to the expected judgment.
Comments
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Well done Mr Saraf - you showed great character in staying the course despite multiple pressures and advise, and good on you and your supporters to have taken [...] by its horns. More power to you and your merry merit seekers.
Also a good reminder to ppl that professional relationships and partners need to be treated as equals and not lesser mortals of “an unequal marriage”.
Next what ? Is RKL withdrawing newspaper publication ? Writing back to clients that he lost the case ? Reneging on Ppl he was speaking to to hire them as partners ?
Nigam, Kaul, AMS would have had to pause to pick sides since they are regularly briefed by all firms.
To put more simply for you, RKL used underhand and goon-tricks to deny access. Jiski laathi uski bhains is not a sport.
If you know Mohit, you would have been aware that he trusts the law utmost and believes in legal processes. And so he was determined to fight his position legally and not through brute force. And today he stands vindicated.
Even when he threw Mr Luthra out, he instructed staff to behave respectfully and not take away his privileges. That is character.
And about taking the firm to the cleaners without regard to associates etc, he did his best to solve the issue but since it takes 2 to tango and RKL was determined to show how he is the Big Boss, there was no option but to go a little crazy. Remember RKL sought to dissolve the firm in December 2019 and not MS. Even now ask litigation folks on how RKL and his 3 stooges are screwing people’s lives.
MS is a leader. May have some flaws but nothing which is fatal.
After all are we talking of MS or Mother Teresa?
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As usual the big man has gone missing. IMO he was never fit to lead the Firm and it gets proven everyday. As the MP it was his responsibility to stand up to the Tridev and he abdicated it. At least MS spoke in our favour during the bonus freeze. The big man has his finger on his lips. He is the true harbinger of ruin. It’s shameful how careers are being played with!!!
A more shameless, self-serving person would be hard to find. RKL has shown that he has no ability to handle people and all he cares about is money and so his hound with same name is out to screw everyone. Waiting for MS to rejoin on Saturday and straighten affairs out.
People have quit right, left and center and his response to all seems to be “Hmmmmmmmmmm - you tell me, am I wrong”. Dude, people are leaving because they are feeling lost and you wish to get assurances about yourself and your supposed awesomeness. Wake up. Smell the coffee.
But for my bosses, I would have left. They are role models who offer assurances and a plan and have made my team comfortable. They are working with the whole team to figure a new place and smooth exit. Wish RKL had understood how to manage stressful situations. Smoking a pipe with mountains as your background while wearing a dressing gown is not management. Heights.
My bosses and I look forward to the no-nonsense straight and narrow professional conduct of MS. That should help them make the final decision on stay or leave.
It would be silly right now for Mohit Saraf to pretend like he's won. The court has just temporarily reinstated him after all - from 1 0, it's now 1 1. He will face an uphill battle in terms of regaining respect and saving face WRT employees of the firm - He did after all attempt to pull off a coup against the managing partner and founder. People in the firm know who started this fight and it was MS. From MS and RKL v All others argument / fight for equity dilution he conveniently made it seems like RKL v MS & all others all of a sudden. As far as equity dilution is concerned everyone in the firm knows both MS and RKL are to blame for the dilly-dallying
And they're back to square one! Grapevine is that MS is planning to take a few loyalists and setup a L&L Spinoff - L&L Saraf & Co. A fifth of the corp partners are expected to leave with him
Time for RKL to up the ante and his coterie of rebels. Atleast 75 percent of corp partners and teams are with him without doubt
https://twitter.com/adityakalra/status/1351718928825782273?s=20
January - Dissolution because I say so
February - Me agreeing to 5% is a lie despite 5 witnesses
March - I want 10 crore every year for life
April - Family will inherit my share notwithstanding competence coz this is my idea of “professional”
May - let’s not give Tax and IP money and let’s blame bereavement at Senior Partner for it
June - Litigation associates & partners are our priority & so let’s claw back their monies
July - Let me scare already stressed out Corp partners thereby delay equity
August - Let’s make fun of people’s concern for me
September - Let’s do townhall and wash my dirty linen with MS in public
October - Let me show how sword is mightier than the Pen
November - Let me talk big with no follow-up and while at it disband the equity committee which I only setup 4 weeks back. Cause after all me and thinking through are two sides of a coin which will not meet
December - Let me hold monies of partners at ransom till they part with their relationships
Anyways - please continue with the shit show and tashreef rakhiye in the foot (and foothills) as and when conveniently required. You will surely get treated to a trip to Mussoorie as just rewards - as that is something the man in Kasaul determines the hallmark of a modern and professional law firm. Kya pata - naya equity committee bhi mil jaye on Mall Road distributing another 0.25%.
So slaves may come and slaves may go but the carriages and palaces multiply forever - until one day may be they won’t.
Can someone find a V for Vendetta meme and put it below :) - to underscore the futility and succour of the LI comments section.
Order was in abeyance till 21st. Has MS rejoined office today ? Has RKL filed appeal ?