On Monday, brothers and real estate scions Abhishek and Abhinandan Lodha reached a friendly settlement over the use of the “Lodha” brand, resolving potentially divided family disputes outside the court.
Similarly, in January, experienced Bollywood Director Ramesh Sippy and his nephew (with other stakeholders) mediated to resolve disputes about high-value South Mumbai property, highlighting an increasing preference for alternative dispute resolution in high-net-worth solutions that maintain capital and relationships.
Anand Desai, managing partner of law firm DSK Legal, said mediation is increasingly attracting attention in commercial households to address the differences as it helps protect the home brand and any reputational losses.
“Mediation is private, because at one time in the public domain, both parties’ egos are vulnerable to both statements, resulting in a solid position of the parties and the “advisor” starting to provide “advice.”
Confidentiality is also a key factor in pushing corporate families to mediation, especially in any age of social media where problems are not visible. The parties involved also want to avoid the time-consuming and expensive nature of Indian litigation. Courts across India have heard more than 45.4 million cases, including more than 6.2 million High Court cases, and more than 81,000 cases, according to the National Judicial Data Grid (NJDG). In an environment where businesses reinvent every four to five years, advocate and mediator Tanu Mehta said sponsors are looking for faster solutions, and mediation is the most effective.
“Arbitration and litigation are more facts and evidence, and many family disputes originate from unresolved emotional problems or differences that can be effectively resolved under mediation,” said Mehta, chairman of the Mediation and Reconciliation Committee of the Mumbai Chamber of Commerce.
In a recent case, when differences among members of the business family in Mumbai increased, interest in commodity trade and real estate, they chose to mediate before filing a lawsuit. Under the agreed terms, a small part of the family acquires commodity trading business as well as certain real estate assets, while the other part engages in real estate business.
In another case, the parties appointed an experienced banker as a mediator to resolve a lawyer in Mumbai to resolve family disputes, both cases expressed willingness to both cases and demanded anonymity due to the confidentiality of the entire process.
“Mediation is a very logical way to resolve disputes, not an endless insider battle,” said Ketan Dalal, founder of consulting firm Katalyst Advisors. He added: “In fact, this approach works if the parties are pragmatic and recognize the dangers and problems of endless litigation.”
