Indian firm FoxMandal Little has paid the salaries owed to Delhi fee-earners after cashflow difficulties led to a two-month delay.
As reported on TheLawyer.com last month, the firm was unable to pay its Delhi lawyers because the firm’s lockup – the time it takes for clients to pay bills after lawyers start work on a project – had increased from around 90 days to up to six months (27 July 2009).
According to Indian legal news site LegallyIndia.com, FoxMandal managing partner Som Mandal said that all salary payments to fee-earners are now up-to-date, having been paid out in the last two weeks.
The office’s partners have still not received their drawings, but Mandal hopes this will happen by the end of this month.
Mandal told LegallyIndia.com that the firm had pushed clients to pay overdue bills, leading to an improved cashflow situation.
The firm is currently in the process of implementing further changes to prevent such cash flow difficulties from occurring in future.