Shardul, Cyril Shroff agree for mediation to settle dispute over mother's will

Brothers and managing partners of India's largest law firm Amarchand Mangaldas & Suresh A Shroff & Co Shardul and Cyril Shroff have agreed for mediation on differences over the will of their deceased mother, the late Bharti Shroff.

During a hearing before the Bombay high court on Tuesday, they nominated investment banker Nimesh Kampani, senior counsel Harish Salve and justice (retired) BN Srikrishna as mediators.

"The parties have validated an interim arrangement and agreed to a time-bound remediation to the family suit," observed justice RD Dhanuka.

The judge said the mediators will have to decide on the issues by December 31, but, he clarified, the date could be extended by mutual consent of the brothers.

The two have agreed that they will not take any action on the 52,000 units of equity owned by their mother in the firm. The profits on these units will be kept in an interest-bearing suspense account of the firm till the mediation process is complete.

Shardul, who manages the firm's Delhi affairs, had moved HC against his younger brother over the implementation of the will.

She had willed her entire equity to Shardul, but, according to the Family Framework Agreement signed by the family members, her share was to be divided equally between the two. She had held 22.5% shares (the most) in the firm.

Shardul's counsel, former finance minister P Chidambaram, argued that his (Shardul's) mother has willed her entire share to him. "If there is no family arrangement, the share of the deceased partner has to go as per the law," argued Chidambaram.

He also said according to the will, she had decided to disinherit Cyril as he had ill-treated her.

Shardul has approached the HC for probate of the will. The matter has been kept for hearing on January 19, 2015.