Mohit Saraf launches new law firm post split with L&L Co-founder Rajiv Luthra

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Corporate lawyer Mohit Saraf announced the launch of a new law firm named Saraf and Partners after an acrimonious split from L&L Partners (formerly Luthra & Luthra Law Offices) which he had co-founded with Rajiv Luthra.

The move comes on the back of a bitter feud between both lawyers over equity dilution which resulted in heated litigation and finally ended in a separation following an order of the division bench of the Delhi High Court.

The new law firm Saraf & Partners will be an independent, full-service legal enterprise with offices in Delhi, Mumbai, and Bengaluru, said a statement from the company. Saraf and Partners shall have  21 Partners and total manpower in excess of 85, said the statement.  It will offer services in the areas of mergers and acquisitions, restructuring, PE & VC investments, banking and finance, insolvency & bankruptcy, IPR & Tax. as well as corporate disputes.

Sharing his views on the launch of Saraf & Partners, Mohit Saraf, Founder & Managing Partner said, “The legal industry is evolving at a tremendous pace, making it crucial for Indian law firms to reinvent, advance, and adapt themselves to these changing times. While the split from L&L was a major contributor to the inception of Saraf & Partners, one of the core values being offered by this firm is the modern ideology and inclusiveness in the management of clients and business partners. Our mantra is to build an institution where everyone feels a sense of belongingness and loyalty towards the firm."

“At inception, only a third of the firm’s equity shall be held by me – with another third being held by the various leading partners who shall be transitioning to join the firm. A further third of the equity of the firm has been earmarked for the talent acquisition process to ensure that the best and the brightest lawyers are both incentivised to join,” he added.

Saraf said the High Court order empowered him to set up his own independent law practice, including in partnership with any lawyer/ advocate who was part of L&L Partners. Both the feuding partners are entitled to claim credit for all works done and accolades won by L&L as well as compete for its clients, work, advocates, and staff, he said in the statement. Rajiv Luthra couldn’t be contacted for immediate comment.

The last time a big corporate law firm in India saw a split following litigation was when Amarchand & Mangaldas and Suresh A Shroff & Co was divided between brothers Cyril Shroff & Shardul Shroff in May 2015.  A detailed family settlement was reached between the siblings with the help of three mediators – Senior Counsel Harish Salve, former SC judge BN Srikrishna and founder of JM Financial Nimesh Kampani.

THE BACKGROUND OF THE L&L SPAT

L&L was a two-partner partnership firm that was run by Saraf and Rajiv Luthra according to the statement released by the former. Differences emerged between the two over sharing of ownership of the firm with younger partners, according to Saraf. This resulted in Luthra expelling Saraf from the firm which led to a legal battle  between the two partners before the Delhi High Court. In January 2021, the Court ruled in favour of Saraf.

In an appeal before the division bench of the Delhi High Court, the parties, in the interest of all the clients, attorneys and staff associated with the practice, decided to agree to separate - on terms of settlement which were recorded by the court through its orders.

According to legallyindia.com, Saraf starts out with “a warchest of Rs 52 crore in cash from Rajiv Luthra after the litigation, and a bank guarantee of Rs 25 crore from the latter pending the final outcome of an arbitration proceeding".