Shardul versus Cyril: Chidambaram for Shardul, Iqbal Chagla for Cyril; Salve, BN Srikrishna J. and Nimesh Kampani appointed mediators (Read Bombay HC Order and Notice of Motion)

A packed courtroom of the Bombay High Court witnessed arguments that took nearly two hours today. The arguments were made by senior advocate and former Union Minister, P Chidambaram who was advised by Bharucha & Partners..As reported earlier, the immediate bone of contention appears to be the division of the firm’s equity. More specifically, the division of the equity as per the will of the late Bharati Shroff, according to which it was Shardul Shroff who was to be made the sole recipient of the late Mrs. Shroff’s share. Under the will, Shardul was appointed the sole executor..Now Chidambaram who is appearing for Shardul Shroff argued that the Management Committee of the firm passed a resolution by circulation, one which essentially reallocated the late Mrs. Shroff’s equity. It is this resolution, the first of its kind in the firm’s history to be passed through circulation, which is under attack. Chidambaram also said that there was a “hidden agenda” to take over the firm..Strongly, and quite vocally, denying these claims Senior Advocate Iqbal Chagla argued that there was a clear suppression of facts. Chagla stated that in fact, Cyril Shroff had written an e-mail to his brother the day before this suit was filed. In his e-mail, Cyril had said that since this dispute was currently under mediation, the management committee’s resolution would be kept in abeyance. Chagla also said that this was a matter best suited for mediation and that nothing would be gained by washing the firm’s linen in public. .Darius Khambata appeared for two of the Defendants, namely James Abraham and George Goulding who were the former BCG Consultant Partners and are on the firm’s Management Committee..After hearing arguments for close to two hours, Justice Dhanuka posted the matter for 3pm today at which time both parties would inform the court as to the details of the suspense account where the shares will be transferred..Update at 15:55 : The lawyers informed the court that the parties are willing to mediate. Both Shardul and Cyril have agreed to appoint Justice BN Srikrishna, Harish Salve and Nimesh Kampani as mediators. The mediation proceedings are to be completed by December 31 this year..The Defendants have been directed to file their reply within three weeks from today. The next date of hearing is on January 19, 2015.