Shardul versus Cyril: Justice Dhanuka to hear interim application – Shardul alleges “connivance” of family members over firm equity (Updated)

Tomorrow, the Bombay High Court will witness the first legal battle involving the inheritance dispute of India’s first legal family. Justice RD Dhanuka will be hearing an application for interim relief, referred to as a notice of motion, listed at item 6 tomorrow..According to sources, Senior Advocates P. Chidambaram and Soli Cooper will appear for Shardul Shroff while Senior Advocates Darius Khambata and Virag Tulzapurkar are likely to appear for Cyril Shroff and other six defendants..The notice of motion (No 2559 of 2014) in Civil Suit No. 1072 of 2014, a copy of which has been accessed by Bar & Bench, provides a brief summary of the events that have transpired so far..Following the death of Bharati Shroff in August this year, the ownership distribution of the firm has come in to question..Under the firm’s partnership agreement, Bharati Shroff held a 35% share in the registered partnership firm Amarchand & Mangaldas & Harilal Shroff & Co (AMHS). She also held 36,226 Class A shares in Amarchand Towers Pvt. Ltd (ATP)..It is these shares that, according to the interim application, were to be granted to Shardul Shroff, with Cyril Shroff and Vandana Shroff being specifically excluded due to personal differences..And although attempts were made to find an amicable solution, these talks eventually failed in the second week of October. It is Shardul’s contention that in the second week of October, there was a deliberate conniving of the Defendants to wrongfully appropriate the late Mrs. Shroff’s partnership share..In the first week of November, Shardul wrote to the Defendants asking them to maintain status quo and not go ahead with any changes to the ownership structure..A few days later, Shardul was informed of a circular resolution, which, he claims, attempted to do just that..The application states that,.“…an attempt was made to deny the ownership interest of the estate and fob off the estate with the balance to the credit of the capital account and the current account of the deceased with the firm.”.The interim application therefore seeks two reliefs – one, a restraint on all the defendants from “distribution of profits” in respect of the firm’s partnership share, and two, a restraint on Defendants 1 and 2 (Cyril Shroff and Vandana Shroff) from receiving any “distribution of profits or on account of payment” to the Partnership share..On Friday, Bharati Shroff’s will was filed for probate in Bombay together with a suit for injunction prohibiting Cyril Shroff from indulging in any “pilfering” of the estate..Bharucha & Partners’ MP Bharucha and Alka Bharucha are representing Shardul Shroff while Federal & Rashmikant is representing Cyril Shroff and other defendants.