Hemant Sahai, Paras Kuhad kill short-lived union, demerge (UPDATE-1)

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Hemant Sahai Associates and Paras Kuhad & Associates (PKA) have demerged only two months after announcing the ill-fated merger of their practices to create PHA Advocates.

The decision to part ways was announced by the management to the partnership yesterday (14 December) and will take effect retrospectively from 1 December, according to authoritative sources.

PKA managing partner Paras Kuhad sent a mobile phone text message to all lawyers in his firm, stating: “Having taken the feedback from all of you and for the reasons that we discussed - and with a view to preserve the culture- that we in PKA have always lived by, I decided to bite the bullet and dissolved PHA effective 1 st dec with every Partners [sic] concurrence.”

“We are back as PKA,” added the text message. “Heads of offices are requested to forward the message to everyone in their offices.”

However, it is understood that the full reasoning behind the demerger is not yet known to the PHA Advocates’ partnership.

The mechanics of how the firm of 10 partners and 115 lawyers will be divided has also not yet been announced.

Hemant Sahai’s team of around five in Mumbai had moved into Paras Kuhad’s larger office and Paras Kuhad’s smaller Delhi team temporarily moved into Hemant Sahai’s office of 25, while the firms were seeking new premises.

Meanwhile, two partners had also joined the firm since the merger took effect on 1 October. An AZB & Partners senior associate had joined PHA Advocates as a Mumbai corporate partner in November and a Mulla & Mulla senior associate had joined the firm as a Mumbai litigation partner.

Hemant Sahai’s primary strength lies in corporate with Paras Kuhad being particularly well-known for its litigation practice.

It is understood that the original merger was in part prompted by the resignation of the two Paras Kuhad Mumbai founders, with partner Manish Desai quitting almost two months before the merger announcement on 29 September and partner Sowjanya Menon handing in her notice a day later on 30 September.

Desai and Menon have since started up a new Mumbai firm called Vidhii Partners with a number of former Paras Kuhad associates.

The original merger between the firms had followed a difficult year, in which Hemant Sahai lost its Mumbai office head Saurabh Awasthi and Delhi regulatory and litigation partner Sitesh Mukherjee, who joined Trilegal with a team of four. Paras Kuhad had lost its Kolkata office head Niloy Pyne, who started up his own firm.

Pre-merger Hemant Sahai had offices in Delhi and Mumbai.

Paras Kuhad independently had offices in Delhi, Mumbai, Jaipur, Chennai and Kolkata, as well as offices in Jodhpur and Pune, according to the firm’s website.

In a formal statement the firms issued after the merger, the Jodhpur and Pune offices were not mentioned.

Respective managing partners Hemant Sahai and Paras Kuhad were unavailable for comment at the time of publication.

Updated at 16:52 IST, 14 December with telephone text message by Paras Kuhad.

Comments

Guest 14 Dec 2009, 10:32
+1 -1
there was a remote possibility that this coalition would work ...!! the Merger itself was a surprise to many who worked with these firms previously...
anonymous 14 Dec 2009, 11:59
+1 -1
First merge
Then demerge
what next...

Submerge??
R.Ramachandran 14 Dec 2009, 12:59
+1 -1
No.2, it need not be "submerge" but in fact EMERGE.
arya_s 14 Dec 2009, 14:44
+1 -1
i guess it was in the offing after what happened over the past few weeks. Apparently Hemanth sahai met Mr. rohan shah in JWM last week. Is something brewing up between ELP n HSA?
Rahul 14 Dec 2009, 17:20
+1 -0
The Pune office of PKA was known by the name Paras Kudah Nevagi. But nevagi opted out during the merger. Now Nevagi Associates operates independently in Pune
Parikshit 15 Dec 2009, 07:15
+0 -0
I go by Paras Sir. He is the best professional human being in this field. None of the person in the legal field can match up to him. Firstly he is human with a lot of culture and grace and secondly a through professional whn it comes to work. Sir will surely go great guns in times to come.
Anon 15 Dec 2009, 09:29
+0 -0
Parikshit - Are you working for Paras Kuhad?
Analyst 15 Dec 2009, 09:37
+0 -0
The concept of mergers in Indian law firms is very recent in origin. The important issue is whether the decision to merge is taken purely with an eye to supplement the number of fee earners, office and practice areas or also with an understanding of the people and culture of the merging firms. The business of law firms is people intensive. Through years the main players of the firm (generally the managing partner) develop a perception of the profession, the firm's potential to expand and the issues that are core to the firm's future and vision. These perception may vary from firm to firm, from person to person. What is important is that there should be some commonality of vision and values. Further, prior to the merger, the members of each of the merging firm, not necessarily restricted to partners, must be informed and welcome to share their views on the merger.

Unfortunately, the many law firm mergers that have taken place in the recent past (please do not construe it as "all") seem to have been driven purely by economics without any prior analysis of the human resource aspect. It would be better if mergers are planned gradually with full understanding of the implications that may follow a divorce.

As India prepares to usher in foreign players to the legal industry, mergers among Indian law firm assumes a significant position in the issues that concern the development of the legal industry in India. For mergers may be the fastest way to grow in size and capability. Hope to see successful mergers in the legal industry in 2010.
Parikshit 15 Dec 2009, 10:16
+0 -0
No. I am not presently working with Paras Sir but have worked with him for a long six years after fininshing my 5 years degree from Government Law College Bombay and than I moved on to Amarchand. So I thought I should share by views. Every person has his own understanding so i shared mine. He has and will always remain my mentor. Everyone is a professional but he is much more than that also after being a professional first.
Anonymous 17 Dec 2009, 11:24
+0 -0
wondering the plight of the associates of both the demerged entities caused due to such hasty decisions purely driven by economics without even considering the human psyche and its turmoils
Anonymous 6 Jan 2010, 16:03
+0 -0
I think soon PKA and Vidhii Associates will submerge...
Like someone already mentioned I wonder at plight of the existing employees of both the organisations!