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India’s largest law firm Amarchand & Mangaldas & Suresh A Shroff & Co will dissolve for separate businesses to be started by its managing partners and brothers Shardul Shroff and Cyril. Judge Gautam Patel of the Bombay High Court allowed a suit — filed by elder brother Shardul and contested by younger Cyril — to be withdrawn after a successful mediation of their dispute.
Shardul and Cyril each have about 17 per cent stake in the firm. Their mother Bharati Shroff, who died in August 2014, was the single-largest shareholder in the law firm, with a 22.5 per cent stake. The dispute between the brothers relates to a June 2012 videographed, holographic will (a legal document that says what is to happen to a person’s property when he/she dies) of their mother and a January codicil (a legal document made to modify a will). Bharati willed her entire assets and equity in the firm to Shardul.
This went against a partnership deed and a family framework agreement that proposed her equity to be split evenly between the brothers in the event of her death. Delhi-based Shardul had filed a petition in the Bombay High Court in November to implement his mother's will. This led to the dispute over the ownership of the firm, which employs 700 lawyers and has 86 partners. Cyril had earlier contested the will, but both the brothers have now accepted the settlement made by the mediation panel.
A statement issued by the mediation panel comprising B N Srikirshna, Harish Salve, and Nimesh Kampani, said, “Cyril agreed not to contest and agreed for a grant of probate (the process of proving in court that the will of a person who has died is valid) to the will and the codicil of his mother, irrespective of whatever grounds he may have had to contest both. Shardul agreed not to press the suit, in view of the family settlement and mediation award.” While the details of the arbitration report were not immediately known, it is clear the brothers have decided to part ways and start separate businesses. A family settlement has been arrived at for the division of family properties, professional practice, and allocation of assets.
BRIEF HISTORY OF THE FIRM
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1917: Started by Amarchand Shroff and Mangaldas Mehta
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1980: Amarchand’s son Suresh A Shroff and the last's wife Bharati took over and the firm is now known as Amarchand & Mangaldas & Suresh A Shroff & Co
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1994: The death of Suresh led to the ascension of his sons, Shardul and Cyril, who took over Delhi and Mumbai offices, respectively. Along with the mother, Bharati, they controlled the majority equity stake in the partnership firm
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August 2014: Bharati dies, leaving behind a will that bequeaths her stake to elder son, Shardul
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November 2014: Shardul moves Bombay High Court seeking directions to implement the will
- May 2015: After successful mediation, court says the will is valid
