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On Monday, the Delhi High Court stayed the removal of Mohit Saraf, a Senior Partner at L&L partners till the Arbitration proceeding are concluded. The decision was taken by a Single Judge Bench of the Delhi High Court comprising of Justice V Kameshwar Rao.
The judgment stated that termination of the petitioner (Mohit Saraf) from the partnership by the respondent (Rajiv Luthra) by an email dated 13th October is prima facie in violation of the Deed as well as the Partnership Act. The court referred to Section 12 of the Partnership Act, 1932 and said that in a situation where a partner “has the right to take part in the conduct of the business” and has kept the petitioner away from the business of the partnership shall be his liability, further directing that the action on the contents of the email for termination shall be stayed “till the conclusion of the prospective arbitration proceedings”
The case was filed by Mohit Saraf in the month of October last year before the Delhi High Court after the said email was received by him. The court initially suggested the reference of the case to mediation but after failed talks, the matter was brought back to the court. Both the parties made various assertions before the court.
Agreeing with the submissions made by the petitioners, the court held that “partners in the firm stand on equal footing. One partner acts as an agent of the other(s). Together they constitute a firm. The partnership per se is not a distinct legal entity.”
Giving various other reasons, the court held that the petitioner’s termination was done in good faith and stayed it till the proceedings for arbitration with Rajiv Luthra, Managing Partner and Founder of the law firm, are concluded.
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