Delhi High Court reserves order in Rajiv Luthra v. Mohit Saraf as parties "agree to disagree" on terms of split

The tussle between L&L Partners Founding Partner Rajiv Luthra and Senior Partner Mohit Saraf before the Delhi High Court came to a close on Wednesday, with the Court reserving its order in the matter..After hearing the matter for over six months, the Special Bench of Justices Rajiv Sahai Endlaw and Sanjeev Narula reserved its order in Luthra's appeal against the Single Judge order reinstating Saraf to the firm's partnership..Today, the parties discussed the terms under which the split between the two lawyers would take place, so that the Court passes a final consent order..However, they failed to see eye-to-eye regarding the process by which the firm's lawyers would be allowed to join either Luthra or Saraf after the split. Senior Advocate Abhishek Manu Singhvi, appearing for Luthra, pointed to a clause in the contracts of the lawyers which states that they cannot join competitors for four weeks after quitting L&L Partners. Singhvi said that Luthra was willing to waive this clause.On the other hand, Advocate Raghvendra Singh, appearing for Saraf, suggested a 90-day status quo period. He said,"It shouldn't happen that after I am paid, work gets allocated from people who are joining me to people who are joining Luthra...I suggest status quo on this aspect for 90 days.".Another point over the parties disagreed was over transfer of the firm's data. Singh stated that data of the firm which does not pertain to clients must be given to both parties. Singhvi countered this, asking,"He wants to divorce the firm and paralyse it (for 90 days) also?" .Further, Singh asked the Court that Saraf be allowed to describe himself as a co-founder of L&L Partners. Singhvi took exception to this argument, saying,"Neither on the partnership deed or the website is Saraf described as a co-founder. We cannot play games on this...".In the face of these disagreements, the Bench gave the parties two options:"...come to a settlement on your own so we can pass a consent order, or we will decide the appeal on our own.".In the end, the parties, agreed to let the Court sort out the issues over which they failed to reach consensus, with Singhvi saying that they have "agreed to disagree"..Yesterday, Rajiv Luthra agreed to pay to Mohit Saraf a sum of Rs 52 crore and furnish an irrevocable bank guarantee of a sum of Rs 25 crore, following which he will leave the firm. It was also agreed that Saraf shall cede any right of reinstatement to the L&L firms..In its draft consent order, the High Court also stated that 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 the name of the new practice shall not have Luthra or L&L as part thereof. Luthra and Saraf will be allowed to compete for clients, advocates and staff of L&L Mumbai and Delhi..[Breaking] Rajiv Luthra to pay Mohit Saraf Rs 52 crore and bank guarantee of Rs 25 crore as interim settlement: Delhi High Court .Saraf had moved the High Court in October last year after he was removed from the L&L partnership by Luthra..Following a suggestion made by the Court, Senior Advocate Harish Salve had agreed to mediate between Luthra and Saraf. The same, however, failed to bear fruit. An earlier attempt to settle the matter through mediation had also failed..After the matter returned to the High Court, a Single Judge stayed the termination of Saraf from the L&L partnership. Luthra then appealed against this verdict, arguing that the Single Judge's order was riddled with inconsistencies..Proceedings regarding the dispute between Luthra and Saraf are pending before an arbitral tribunal comprising former Supreme Court judges, Justices Madan Lokur, RV Raveendran and AK Sikri.