Partners Rajiv Luthra and Mohit Saraf, L&L Partners Knock the Delhi HC doors again after calling off the mediation after it faced quite a few hurdles. Senior Advocate Sriram Panchu who was the mediator between this high-profile partner banter, submitted the mediation report to the Delhi HC on 2nd November, 2020.
Delhi HC’s order for mediation stated that it should by wrapped up by November 1. This order was passed on 17th October, 2020.
After a thorough hearing, the single Bench of Justice K. Kameswar Rao had appointed Panchu as the mediator.
Luthra and Saraf are the senior most partners at L&L who got into a dilution tiff over the firm’s equity. Saraf filed a plea seeking for interim orders from the Delhi HC after Luthra allegedly terminated the partnership. The primary contention highlighted in Saraf’s plea stated that he cannot be abruptly removed out of the firm using strong-arm diplomacies. Sandeep Das, the advocate on behalf of Saraf had filed the plea.
Representing Saraf was Parag Tripathi who emphasised on how his client had been frozen out of the firm. Arguing that Saraf can still continue to function as a partner for 3 months as per the partnership deed, he further argued that his partnership should be reinstated altogether. Adding further, he asserted that the firm had a dynamic reputation with a turnover in crores and this feud is not good for its reputation. Further adding that so many young lawyers will leave the firm since Saraf was responsible for recruiting them. Senior Advocate Arvid Nigam also asserted the partnership is not partnership at will and the deed does not mention the expulsion of a partner. Further informing that an expulsion can happen only if the grounds mentioned under clause 8 of the said partnership deed take place or if the firm is dissolved.
“For 20 years I’ve given my blood and toil to the firm. People may not know me on the litigation side. I have been managing the firm for years.” – Advocate Nigam on behalf of Saraf. When the order was mediation was issued, the Court also held that, should the mediation fail, the hearing for this matter shall be resumed on November 3.