Delhi High Court seeks response from Rajiv Luthra, other L&L Partners in Mohit Saraf's plea for appointment of arbitrator

The Delhi High Court on Tuesday issued notice to L&L Partners Founder and Managing Partner Rajiv Luthra and its senior partners Bobby Chandhoke and Sudhir Sharma in a petition by Mohit Saraf seeking the appointment of a sole arbitrator to resolve the disputes between him and the firm..Justice Prateek Jalan also sought responses from Sangeeta and Ajay Sondhi – the legal heirs of Vijay Sondhi – and Deepali Chandhoke, who was inducted into the equity partnership in 2015.The case will now be considered after three weeks. .The Court, however, took exception to the prayer made by Saraf that former Supreme Court judge, Justice Deepak Gupta be appointed the sole arbitrator. Justice Gupta was earlier appointed to resolve the disputes between the firm and the heirs of Sondhi.Justice Jalan questioned Senior Advocate Jayant Mehta, appearing for Saraf, why the Court should entertain a prayer of this nature. The judge asked the counsel why a person who is not mentioned in the arbitration clause has been specifically named in the prayer.“Your prayer is discourteous to the Court; it overreaches what is within your own power to ask. If you were not compelled to withdraw the petition today, it is only because I extended an undue courtesy to the counsel. Please advise your client to not overreach the boundary of a litigant,” the judge sternly remarked..In his petition, Saraf stated that the litigation arm of the firm was set up by him along with Luthra, Chandhoke, Sharma and the late Sondhi in 2003. The plea states that these Partners acted together and “wrongfully and illegally expelled” him from the firm, thereby preventing him from conducting its business and affairs.In March 2021, a dispute and arbitration notice was sent by Saraf to the respondents and Sondhi suggesting that the arbitral tribunal constituted in relation to disputes between him and Luthra be invited to adjudicate the disputes that have arisen in relation to the L&L Partners litigation firm as well.The following month, Saraf stated, the Partners sought to initiate settlement discussions with him. However, after Sondhi passed away in January 2022, the Partners delayed the same, due to which another notice was sent to them. The new notice stated that the Partners had illegally distributed the profits of Luthra & Luthra Law Offices Litigation without settling Saraf's claims and that there was an attempt to distribute his shares in the firm.Saraf further said that the according to information available with him, the Chandhokes and Sharma acquired a new office in South Delhi, were actively soliciting clients, and were attempting to transfer the existing business and property of the firm to the new office, which directly affects his rights.The plea further alleged that when they met to resolve the dispute in April and May this year, Saraf was offered only a meagre/paltry sum, which he refused.“At the meetings, it was assured to the Petitioner by the Respondents along with the Deceased Partner, that the Petitioner's shares in the Litigation Firm would not be distributed till final payments were made to the Petitioner. It was further assured that the Respondents will not distribute any payments/ profits made by the Litigation Finn until full and final settlement of account with the Petitioner was completed,” read the petition..At this juncture, Sondhi’s legal heirs approached the Court staking a claim to be inducted into the firm's equity partnership. They had also prayed that the 18.5% equity stake held by Sondhi not be diluted by the existing Partners. A judgment was passed in that matter appointing Justice Gupta as the sole arbitrator. During these hearings, Saraf pointed out, counsel for the Partners had stated that the share of Sondhi was approximately 20.8% and not 18.51% as they distributed his assets amongst themselves.“Even after repeated assurances given by Respondent Nos. 1-4, without settlement of claims with the Petitioner, they have illegally distributed amongst themselves, the profits of the Litigation Firm,” reads the petition.It added,“If the Petitioner is not allowed to make his claim before the Sole Arbitrator, it will lead to duplicity/ multiplicity of the proceedings and there might be a possibility of conflicting judgments and orders passed by the arbitrators as appointed in the disputes on various critical issues such as inter se settlement of claims including accounts of the Petitioner as well as the Legal heirs of the Deceased Partner.".Justice Deepak Gupta appointed as arbitrator in dispute between L&L Partners and heirs of Vijay Sondhi