Clasis Law co-founding partner Sakate Khaitan and three Clasis senior associates have started Khaitan Legal Associates, a law firm with offices in Mumbai and London.
Former Clasis senior associates Radhika Iyer, Sangeeta Jhunjhunwala and Satyendra Shrivastava will be co-founding partners in the firm with a headcount of 11 fee-earners.
Khaitan will continue to divide his time between London and Mumbai, while Shrivastava and his London team of one fee-earner and one non-fee-earner will continue from London.
Iyer and Jhunjhunwala will continue to be based in Mumbai with their team.
The firm will focus on corporate and litigation, particularly in the sectors of insurance, banking and commodities.
Clasis was started by a breakaway group of partners from ALMT Legal in 2011, retaining the best friend relationship with UK-international firm Clyde & Co.
Khaitan Legal, by contrast, will be an entirely independent firm, with informal relationships with lawyers in Delhi, Bangalore and Kolkata to allow it to service work in those cities.
Khaitan commented that he was keen on taking an entrepreneurial initiative to focus on the growing opportunities in the India-US and India-Europe corridors, which he thought would be best served by an independent firm.
Clasis Delhi co-founding partner Vineet Aneja did not respond to a phone call and email seeking comment.
Update 17:12: Aneja has now commented via email: “Clasis London office would continue and I would be spending time between Delhi and London. We wish Sakate and his team all the best.”
Khaitan noted in a press release: “It has been a fulfilling journey thus far, setting up Clasis Law with other partners and a fantastic association with Clyde & Co for the last five years but it is now the time to pursue new ventures.
“I was looking at undertaking an entrepreneurial initiative focused on the ever growing opportunities in the India-Europe and India-US business corridor. An independent legal services platform presents the right fit for me.”
Comments
On a different note, over the years (thanks to LI reporting them) we have seen the evolution of many new firms, break-away firms, GCs taking a plunge and starting their own outfit or joining a start-ups (Ajit Yadav just did that) and sadly, we have also seen their downfall, having seen many of those folding up, or merging or just loosing steam mid-way. I don't want to sound pessimistic but having seen the winds of changes over many moons, I personally believe that days of start-ups are over; these are certainly not the best of the times to become an entrepreneur in legal services. Margins are shrinking; routine work doesn't come to firms any more but done in-house; clients are moving to fixed fee regime, a phenomenon which now is just not only restricted to domestic clients but even international; top firms are cutting their fees to match their competitors, and putting their best brains even on low paying matters if it is a big client and their are several other such indicators. The following months and the years to come will surely test Darwin's theory of the Survival of Fittest - which largely means having institutional clients, deep pockets, above average legal brains apart from tenacity and perseverance. All of those I am afraid would be difficult for the start-ups to inculcate and build upon in today's scenario.
It was easy to do so in the years following 1991 but not 2014. I will be happy to be proved wrong as entrepreneurship - even legal services - must thrive in a free market economy (but I am not seeing the signs, sadly)
All thoughts welcome.
I to a greater extent agree with what you have said , my comments are as under :
1. Law firms in India have still not matured . In a sense there is no method to the madness in which the fees structure operates .
2. Most of the transaction work flows to the law firms where the promoters owners or the so called managing partners are active.
3. Most of the managing partners are directors or the so called independent directors on the board of large companies. That is how the large transaction work is controlled . You just need to have the list of independent directors in some large groups in India to know the story.
4. Large firms bill 4 times or more than the fees they pay to the associates and partners . A stage comes in each partners life when it is easier to branch off and bill twice of what you get this makes life easier for the partner as well.
5. Equations change frequently in law firms as well , life is uncertain once you are not the current favourate of the managing partner you are bound to perish . Therefore, you are left with no alternative but to branch out .
6. There is no difference between the service delivery of large and mid size firms .
7. At one point of time you needed a chamber in the High Court or the Supreme Court to have a respectable practice then came the era of basement practice at Defense colony , Lajpat Nagar , Bnegali Market etc , followed by offices at CP .
8. Now commercial real estate prices have become cheaper , you don not need a crore of Rs to build a library there is mannupatra it is much more easier to open an office .
9. GC's will retire or become redundant all of them would join firms, open up small practices or do nothing .
10 Ex bureaucrats who have minted money while in office , are intelligent , have domain knowledge and contacts will start specialized practice they need engagement and not employment .
Some more evolution will take place the old order will have to change or give way to the new order .
Small firms will continue to come up and be reasonably successful unless the larger firms understand the changing times and become more professional . Large firms are firms of professionals which are run unprofessionally .
All the best Sangeeta, Radhika & Satyendra in your new role. I am sure this venture is going to be successful. :)