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The dispute between corporate lawyers Shardul and Cyril Shroff has ended with the two brothers agreeing to split the largest Indian law firm – Amarchand Mangaldas & Suresh Shroff and Co – into two separate entities.
Under the agreement, Cyril Shroff has decided against contesting the Will of his mother Bharatiben Shroff. In return, Shardul Shroff has agreed not to press suit.
The deal came after six months of negotiations and mediation by JM Financial founder Nimesh Kampani, senior counsel Harish Salve and Justice BN Srikrishna. The settlement was presented to the Bombay High Court on Wednesday, which accepted it and disposed the suit between the two brothers.
Settlement arrived“A detailed family settlement has been arrived at for division of family properties, professional practice and allocation of assets,” said a statement issued by the three mediators.
“With a view to preserve the fair name and reputation of the family unblemished, and in order to foster peace in the family, Cyril Shroff agreed not to contest and agreed for grant of probate to the Will and Codicil of his mother, late Bharatiben Shroff, irrespective of whatever grounds he may have had to contest the Will and Codicil, and Shardul Shroff agreed not to press the suit, in view of the family settlement and arbitral award,” it added.
The dispute between the two brothers had started after it was found out that Bharatiben Shroff, who died in August last year, had willed her entire stake in the company to her elder son Shardul Shroff. She held about 22 per cent share in the law firm.
While Shardul moved the Bombay High Court seeking a direction to implement his late mother’s Will, Cyril’s camp had questioned the Will because it went against the Family Framework Agreement under which Bhartiben’s stake should have been equally divided between the two sons. The court then asked the two bothers to resolve the dispute through mediation.
With over 90 partners and over 700 lawyers, Amarchand Mangaldas is the largest law firm in India. Until now, elder brother Shardul, managed the Delhi office and was responsible for operations in Gurgaon, Kolkata and Ahmedabad.
Cyril is based in Mumbai and managed Bengaluru, Hyderabad and Chennai branches. The 100-year-old law firm will now be split into two.
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