Ex-partner sues FoxMandal Delhi for Rs 79 lakh debt

Wednesday, 25 May 2011 By Legally India Law firms

Exclusive: Former FoxMandal Delhi partner Ravi Bishnoi has filed a summary suit in the Delhi High Court to recover Rs 79.4 lakh ($174,000) from the firm, almost two years after he resigned as partner following allegedly unpaid dues.

Bishnoi, who started SRGR Law Offices with three other FoxMandal partners in December 2009, filed the claim in the Delhi High Court, which was heard on 20 May.

The high court’s joint registrar Hemani Malhotra recorded Bishnoi’s case as: “Fresh suit u/O 37 CPC for recovery of Rs. 79,36,305/- received by way of assignment. Be checked and registered as summary suit.

“Notice be issued to defendants as per prescribed proforma under order 37 Rule (2) CPC, on filing of PF and RC.”

Rule 2 under order XXXVII of the Civil Procedure Code is a summary procedure including the recovery of debt under a written contract or guarantee.

FoxMandal Delhi managing partner Som Mandal told Legally India in an email: “We are not aware of any petition. Ravi is a former partner, if he has a claim against the firm and filed anything, we will deal with it once we see what is his claim.”

A FoxMandal spokesperson confirmed that the firm had not yet been served with the claim and was therefore unable to comment further.

Bishnoi has instructed Vijay Kundal and Dimple Murria as counsel, according to the court documents, which ordered FoxMandal to file its response by 23 July 2011.

Bishnoi and three colleagues had left FoxMandal’s Delhi office in 2009, after a string of partners and associates left following the firm not paying associate and partner salaries for several months because of a cash-flow crunch.

Bishnoi declined to comment when contacted.

The case is CS(OS) 1237/2011, Ravi Bishnoi vs M/S Fox Mandal & Co And Others.

Comments

Ex FML 25 May 2011, 16:23

+3 -1

Wat abt my dues, Mr. [...]???

Shall we not form a forum/union and file a joint suit for recovery of our money from Mr. [...]?

Pls, those who agree with me kindly join hands together for this pious cause, so that we "Poor" ppl can have our money back from those who [...]!!!!

Anonymous 26 May 2011, 08:52

+1 -1

Ravi... I truely suppot you as I feel your cause is genuine. I had also been a member of the FML group in the past and hence I can understand the circumstances which compled you to take this action against FML. What I am worried id that this litigation may hamper the interests of SRGR Law's reputation and credit worthness.

Bole Toh... 26 May 2011, 14:06

Dear #2, your logic is fantastic and proves beyond doubt that you are a real FML 'family' alumni! BUT can you please elaborate as to how reputation and creditworthiness of a creditor or his firm goes down if he takes legal action to recover legally due money against a [...] debtor? Also it is understandable the plight of most of ex personnel who did not have any written contract when you see the treatment being met to a person having written acknowledgement!

Ex FML Club 26 May 2011, 09:42

+1 -0

Dear Anonymous 2, i fully agree with the first part of your comment, however it is an incorrect assumption that SRGR Law firms reputation and creditworthiness is in doubt. On the contrary the people who do not pay money after promising are the ones whose interest and creditworthiness are in question.

Ex-FML Associate 26 May 2011, 11:32

it is great that Ravi has taken the bold step. there should not be any hitch in asking for what is rightfully due to you. this might give a much desired motivation to the young associates who were similarly not paid their due salaries but are scared to come out in open as it may brand them as 'Hostile Employees' and prejudice their career moves.

Anon 27 May 2011, 08:54

Finally the inevitable has happened...

Pankaj Kumar 28 May 2011, 04:34

The issue should have been settled out of court. It is derogatory on part of senior legal luminary and a top class law firm when the duo fight for recovery of money. When we, as lawyers, settle billion dollar disputes of client, cant we settle ours??

Bole Toh... 28 May 2011, 06:10

what is to 'settle' here when the matter is so straight and in wiritng? The firm must immediately pay to its all past and present people whatever was promised verbally or in wiritng! The problem is [...] and easy money leading to super luxury lifestyle at others' expense makes you thick skinned and no amount of [...].

Ex-FML, Noida 28 May 2011, 04:43

+2 -1

[In my opinion] The business model of FM Noida is simple, hire specialized lawyers as partners after promising them the moon as salaries and bonuses, once they have done the slogging doing specialized billable work, allowing their juniors to work alongside and learn from them, the management stops paying the partners not just bonuses but also retainerships, who eventually leave in frustration. Then the management promotes the juniors as partners to fill vacancies but of course at much lower salaries. This way the costs are saved, the Firm continues to exist and run profitably, and [...] continues to travel to London in Business class, spend annual holidays there, buy flats and swanky cars there...whereas the former retainers keep on sending reminders seeking payment of their dues,.... the Bar Council should look into such law firms working...who keep on self patting by advertising awards given by ILFR as 'best employer firm'

anon 28 May 2011, 07:00

I fully agree with Pankaj[sr no. 5]. In normal circumstances grace demands that the matter be settled out of court. But what if the Firm simply ignores its ex employees' genuine claim. one can understand that the Firm may have been tight, in which case the payment of dues can be done in instalments. But while the Firm deliberates on which saloon car to buy for its current partners, the ones who had at one time given their precious time and energy to the Firm are left high and dry. Not paying them altogether is unacceptable and not bonafide on the part of the Firm. The Bar Council must look into this aspect...If the firm is really tight then the Firm controllers must eschew first class air travel and annual sojourns to Europe...they do not do that...very unfortunate and disappointing..not expected from one of the oldest law firms...

FML Creditor 31 May 2011, 08:37

Fully agree with #1, all Ex FML lawyers having claim against FML should join hands and try to collate whatever written evidence people have towards acknowledgement of dues recoverable from FML and file a similar petition.

Well done Ravi, proud of you. Cheers

Reality Bites 31 May 2011, 09:14

the total dues of all EX-FML's who have been [...] are over [...] cr. I dont think FML is in a position to pay.

Senior Person in High Court 31 May 2011, 09:20

+2 -0

This is nothing new! Two recovery suits were filed againt same firm in Delhi High Court few years back!

Reality Bites 8 Jun 2011, 12:40

@10 could you please throw some light on that. would like to know more.

BOLE TOH 9 Jun 2011, 13:07

how much aggregate dues are there on FML , 20CR>> ?

anon 18 Jun 2011, 04:52

You all former retainers may crib about your pending dues and forming a Union but it has no effect on the managing partner who as always is enjoying his annual sojourn in London unmindful of the seriousness of the issue, when he should be trying to resolve the issue of pending payments to his former retainers. Way to go- the best employer law firm of India!

anon 19 Jun 2011, 01:43

Sky was the limit for this century old Firm to have progressed..having had such a great platform to build upon...but what can one do about the [...]?..the inability to distinguish between the loyals and the sychophants...?...and between the performers and the deadwood...?...when you reward sycophancy and do not reward performers you are asking for trouble...and then you start taking advice from an accountant on how to run a law firm...someone who himself hasn't generated any revenue for the firm...now with all performing partners gone..most of the gifted senior associates gone...is it the beginning of the end or the ending of the end...?....very disappointing....

HSA FMDelhi illicit so 4 Jul 2022, 16:43

+0 -0

HSA is pushing its partners to bankruptcy. With 8 months backlog in salary and 2 years bonuses, the founding/managing partner is happy enjoying holidays in london, new york.

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