[Exclusive]: CAM has initiated arbitration against ex-Partner Dorothy Thomas. Here is why.

Cyril Amarchand Mangaldas today filed a Section 9 petition in the Bombay High Court. And the respondent in the application is none other than former Chennai Partner, Dorothy Thomas. The matter was listed before Justice Kathawalla today, with Beri & Co acting as Cyril Amarchand’s filing counsel.

So why did Cyril Amarchand approach the Bombay High Court, and that too against one of its (former) own?

We understand that the arbitration is in connection with enforcing the covenants under the partnership deed for confidentiality, non solicitation and notice period of three months. While this arbitration is pending, the firm has filed a section 9 petition for interim measures.

There is a possibility that Thomas, who moved to Shardul Amarchand Mangaldas along with her team of nine lawyers after initially planning to go independent, has run afoul of the notice period mandated in the partnership deed. As for the non-solicitation and confidentiality clause, it is unclear at this point of time, what are the chain of events that led the invocation of these clauses.

Comments have been sought from both, Cyril Shroff and Dorothy Thomas. Meanwhile, it appears that Cyril Amarchand’s Chennai office has not been completely shut down. There are two or three lawyers deputed to man the fort in the southern city. Cyril Amarchand’s South Head Arjun Lall was also not reachable for comment at the time of publishing this story.

Our sources also say that there is a strong possibility of the matter being settled. Of course, the larger question is how all of this fits in, if at all, with Shardul Amarchand’s southern India growth plans.