Top advocate-on-record (AOR) and Supreme Court powerhouse Agarwal Law Associates (ALA), which has around 50 lawyers, has announced a cut in fee-earner salaries of 30% on those earning more than Rs 40,000 per month at least until 14 April, after closure of the courts and social distancing measures have caused court work to fall off a cliff.
In 2018, ALA had been the busiest law firm in terms of making AOR filings before the Supreme Court, according to our data.
As such, it is no surprise that the firm would be especially hard-hit by the closure and it is unlikely to be the only litigation firm feeling the pinch.
According to an internal WhatsApp message (see below) circulated by management amongst fee-earners, the there was “no clear visibility on when the lockout will end and when the courts will resume functioning normally”.
The immediate cut in compensation was “harsh”, admitted the message, but hopefully “temporary”.
ALA has five partners, with mammoth AOR filer EC Agrawala and Mahesh Agarwal leading the firm, alongside Rishi Agrawala, Chitra Agarwal and Shally Bhasin.
Then there are two associate partners and 44 other fee-earners, according to its website.
One of the partners commented, on condition of anonymity that the firm could lift the temporary pay cut after 14 April, when the government-announced shut down would end.
We understand that all ALA fee-earners are currently working from home but since the firm primarily does litigation work, and the Delhi courts having begun effectively shutting their doors to most hearings since 13 March, there is currently very little billing.
We have reached out to the firm for comment.
Double whammy
ALA hopes for quick return to form
Agarwal Law Associates, meanwhile, vowed in its message to fee-earners to be “first off the block when normal court activity begins”.
It is a safe bet that disputes will not disappear overnight, though this also requires courts adapt to this potential age of social distancing, perhaps with technological innovations, instead of it disrupting more this year’s court calendar.
ALA noted in its WhatsApp message:
“Dear All
The world has changed in an unprecedented manner in the last few weeks. There’s practically no one in the planet who has not been impacted by Covid 19.
At Agarwal Law Associates, we are fortunate that all of us and all our loved ones are safe and healthy. We hope and pray that this continues to be so.
Unfortunately, the business environment is not very favourable for us. The closure of all the courts and tribunals after first week of march of this month has crippled the work. There is no clear visibility on when the lockout will end and when the courts will resume functioning normally.
In light of these developments , we are compelled to take some harsh, but hopefully, temporary measures. With immediate effect, we are compelled to reduce compensation of all by 30 per cent(except for those under 40000)
We hope to restore to full levels as soon as the wider environment permits. As you are all aware, we are one of busiest and most productive law firms. We will therefore be the first off the block when normal court activity begins.
We have all grown together in good times. Hopefully, this phase shall pass soon.
Thanks ?”
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I know you'll get together on closed clubs like these and vote comments such as these down. So click away.
If you have a problem with that, and want stricter enforcement or change in law, go lobby the govt/MPs. Stop trying to hog the limelight here. The point here is the premature (if not unjust) step on part of ALA.
You seem to be an in-house counsel (if not ALA PR) who has given up his bar registration and has to pay full taxes on his 'salary'. I feel your pain and I commend the honest path chosen by you. But please do not litter this post with unrelated comments, if this is not a case of sour grapes.
Lawyers must be discerning and call a spade a spade. Most MPs have minted enough money over time to be able to not screw over their fee earners.
Regardless of whatever is said, people will remember the employers that stood by them - even if not for altruistic reasons, the lawyers will be still thankful for the bonuses that came in. And people will remember the likes of Agrawal - a "powerhouse" trying to act like a piddly little powerless firm.
Sitting in cozy cubicles of law firms don't make your wiser! Government is doing the best it can possibly do so, with the available resources. The government is being guided by 100s of eminent experts in their respective fields.
It's amazing to see your skyrocketing cockiness. What's your claim to fame? A law firm job? Stop your bunkum of blaming business - and worry about your bills. That's the best you can do, right now.
Having pursued an MBA and working with a top global PE fund, we - the PE managers - do think that corp law firm lawyers are very over-rated. Been there myself, so know that very well. Fill in the blobs - and work over.
Have Karanjawalla’s announced anything yet? They’re also primarily a litigation firm.
I am in agreement with Asst. GC. All big corporates should leave them since they have left off their staff in these trying times. When they don’t care for their own people forget that hey will ever take care of anyone’s interest. [...]
We had a lot of expenditure this year.
We had to organise my birthday party at a law officer's (not constitutionally sanctioned) house.
Did you see the notsofancyohisitarolexitiwasarolex that we had gifted to [...]?
[...]
Let's not forget all the miscellaneous expenses that we incur every month.
It is funny how non lawyers (corp slaves) are commenting about what this is like.
Even though corp segment may not do very well, future is, indeed, bright for lit practice. So- relax.
And yes, the Government is doing the best it can. Compare and analyse.
Do clients say it's not a bed of roses when they need something done ASAP? There are ample numbers of mental health and drug abuse issues in the legal fraternity also, however, we are required to deliver no matter what. While we obviously everyone would like their job to be easy, sometimes it just isn't. The government needs to act and do its job (had they taken this more seriously from January, we might not be at this stage), and just because the times are tough doesn't mean they get a pass on the what is expected of it.
Start recognising that the State exists for the betterment of people, and they need to do that first and foremost. And if that isn't the attitude the citizenry adopt, but instead one of apologists, we'll never get of this cycle of useless administrations.
www.livemint.com/companies/news/big-4-firms-defer-promotions-appraisals-bonuses-and-salaries-amid-virus-crisis-11585505169035.html
Respect what the government is doing.
Our cubicles are cosy. But their jobs aren't. Protecting 1.3 billion people out there, and satisfying some pessimists and naysayers like you, isn't an easy task - but they are on it.
Whether it will happen is another debate. Interesting point is that populist politicians and maybe the political class generally is willing to consider such a step. I guess the Greek tragedy may come on us as well.
Why should an honourable lawyer expect money for work which either doesn’t come (because courts are not operational) or need to be done at a lower cost in difficult times?
It's not expected that everyone will be knowledgeable or intelligent, but the least one can do is to be compassionate, at times like these! Unfortunately, it appears that covid-19 has brought out the ancestral traits of the aggarwals!
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