Thread by @barandbench

Delhi High Court hearing Rajiv Luthra's appeal against Single Judge order reinstating Mohit Saraf to L&L partnership

#DelhiHighCourt #LuthravSaraf

Judges and counsel discussing travel plans during court vacation. Too risky to travel, they conclude.

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Senior Advocate Abhishek Manu Singhvi for Luthra: Unfortunately some things are not working out. I will spend a few minutes on the settlement

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It is so near, but yet so far. The figure was Rs. 50 crore + Rs. 28 crore. Even assuming that we are willing to pay 70 crore, the money required to run the firm will be wiped out. The firm cannot run on fresh air: Singhvi

#DelhiHighCourt #LuthravSaraf

He can get Rs. 5000 crore if he wins the arbitration, these are undecided issues. We offered over Rs. 50 crore as interim payment and a bank guarantee to cover the balance. If it fails, it fails: Singhvi

#DelhiHighCourt #LuthravSaraf

Are you willing to give Rs 100 crore for him to leave? That is a test of valuation. Justice Endlaw turns the question on counsel for Saraf

Raghvendra Singh, appearing for Saraf, says this is exactly what he offered to Luthra in October 2020.

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Only if you are willing to pay him the same amount can a settlement be reached. You should either agree to received 1/3 or give 2/3: Justice Endlaw

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You have to pay him 1/3 of what you put the valuation at: Justice Endlaw to Singhvi

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There has been great reduction of cost to bring the firm's war chest to around Rs. 69 crore: Senior Advocate Sidharth Luthra for Rajiv Luthra

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Last we spoke, it had gone up to 55 crore. Now, it is 52 crore plus 25 crore bank guarantee. This seems acceptable: Raghvendra Singh.

Advocate Haripriya Padmanabhan confirming with Rajiv Luthra whether the settlement in acceptable.

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Singhvi gives suggestions on order:

Bank guarantee will be subject to outcome of arbitration.

All monies paid will be adjustable according to the award.

Lawyers are free to join whichever Partner they choose

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There is no pressing of claim for reinstatement, as Raghvendra Singh agreed yesterday: Singhvi

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Rajiv Luthra leaves it to Singhvi and the Bench, if they think it is right

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On name of Saraf's potential new firm, lawyers say that it cannot have Luthra name.

"If you use the Luthra name, I will sue you!" Sidharth Luthra says

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No hardware can be taken from the firm, Justice Endlaw says. Only data of whichever person who is moving to join Saraf can be taken.

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Singh asks for email ids of lawyers to be retained.

Justice Endlaw disagrees: You have to inform all your clients. You will have to market all over again.

Court is agreeable to luthra ids of these lawyers to be terminated.

#DelhiHighCourt #LuthravSaraf

Singh: L&L Partners does transactional and litigation work. First is through Mumbai and Delhi firms, there is no difference between the two.

Are you stepping out of all firms? Justice Sanjeev Narula asks

What will happen to litigation firm? Justice Endlaw

We have started a mediation with the litigation to find a solution: Singh

There needs to be a clean break from all L&L firms: Sidharth Luthra says

Do you have consent from all other Partners? Court asks

#DelhiHighCourt #LuthravSaraf

Sidharth Luthra: New firm should not have any semblance of Luthra name. Data of firm cannot be carried.

Data pertaining to his clients will have to go: Court

That is not a difficulty: Luthra

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It has to be an honourable clean break. Let the arbitrator decide what amounts go to what party. They have to agree to move on: Luthra

What is honourable to you may not be honourable to him, you cannot ask for that: Court

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Rajiv Luthra says that he can make the payment within 24 hours. Data of clients going with Saraf will be shared. Saraf can take credit for work that he has done, not what the firm has done.

It is difficult to draw lines like that. When you are Partners, everything you do is attributable to the firm: Court

#DelhiHighCourt #LuthravSaraf

Please tell us by when Saraf will leave: Luthra asks Singh

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Court begins dictating order

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Rajiv Luthra shall before Saturday, pay to Mohit Saraf a sum of Rs 52 crore and furnish an unconditional, irrevocable bank guarantee of a sum of Rs 25 crore encashable in terms of the award of the arbitral tribunal adjudicating disputes between the parties: Court

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Mohit Saraf shall cede any right to reinstatement to L&L firms: Court

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Payments in terms of profits of firm etc due to Saraf to be subject to outcome of arbitral proceedings: Court

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Saraf shall be entitled to set up his own independent legal practice either alone or in partnership with anyone else. He shall be entitled to describe himself as a former Partner of L&L, but name of new practice shall not have Luthra or L&L as part thereof: Court
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Luthra and Saraf will be allowed to compete for clients, advocates and staff of L&L Mumbai and Delhi: Court

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Whichsoever clients of L&L Mumbai and Delhi decides to move to the legal practice of Saraf, shall be entitled to do so. L&L shall shift the data related to those clients to new firm and will not retain any of this data: Court

New emails ids for those who join Saraf. Clients will be informed of these email ids. Electronic identity of Saraf as L&L Partner shall be blocked on receipt of payment: Court

#DelhiHighCourt #LuthravSaraf

Parties are in talks with respect to split of litigation firm. That will be separate: Court

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Draft order will be circulated to counsel. Final order will be passed tomorrow: Court

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Entire profession is thankful to you for telling us how to bill! Justice Endlaw to Singhvi on a lighter note

Like Mark Twain said of his death, reports of this are greatly exaggerated: Singhvi

Matter ends.

#DelhiHighCourt #LuthravSaraf

[Breaking] Rajiv Luthra to pay Mohit Saraf Rs 52 crore and a bank guarantee of Rs 25 crore as an interim settlement: Delhi High Court

#DelhiHighCourt #LuthravSaraf
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