Delhi HC Disposes BharatPe Cofounder Shashvat Nakrani’s Plea Against Ashneer Grover

The Delhi High Court has disposed of a plea filed by BharatPe cofounder Shashvat Nakrani against an order refusing to restrain the company’s former managing director Ashneer Grover from selling or alienating shares that Nakrani had sold to him.

Lauding the court’s decision a day later, Grover, in a social media post, said, “What a good day and great outcome in Hon’ble Delhi High Court today! Winning streak continues!!”

A Division Bench of Justices Rajiv Shakdher and Amit Bansal did not disturb the single-judge’s order, but expedited the trial of Nakrani’s case, Bar & Bench reported.

Counsel for both parties argued the case for some time but then reached a consensus that the appeal could be disposed of with directions for expeditious trial.

The Bench, therefore, asked the single-judge to frame the issues in the matter on February 28, when the case will be heard next.

The court also appointed a local commissioner for recording of evidence and said that this process should be completed in eight weeks.

It asked both sides to file affidavits of evidence on the issues being framed by the single-judge.

After recording of evidence, the single-judge shall endeavour to hear final arguments in the matter as early as possible, the Division Bench added.

“All questions of law are left open,” it said.

Nakrani was represented by senior advocate Mukul Rohatgi,along with advocates Ankit Jain, Mohit Goel, Sidhant Goel and Neha Jain.

Grover was represented by advocates Giriraj Subramanium, Sidhant Juyal and Simarpal Sawhney.

Nakrani had filed an appeal against the December 15, 2023 order of single-judge Justice Sachin Datta, who rejected an interim application to restrain Grover from selling or alienating the shares.

While dismissing the plea, Justice Datta asked Grover to intimate the court when he decides to sell or transfer the shares in question.

It was Nakrani’s case that he had transferred his shares to Grover and while the latter claimed to have paid for them in cash, the money was never received.

BharatPe was founded by Shashvat Nakrani and Bhavik Koladiya in March 2018, with each owning 50% in the firm. Grover joined the company as a third co-founder and board member in July 2018, and purchased 3,192 shares (2,447 from Nakrani and 745 from Koladiya for INR 10 apiece).

The same report claimed that Grover was to pay INR 24,470 to Nakrani and INR 7,450 to Koladiya. However, it claimed that Grover is yet to pay for the shares.

People familiar with the matter say that the shares in question are worth INR 500 Cr now.

Grover refuted the assertions, claiming that Nakrani’s case is based on a complete “misreading, misinterpretation and misunderstanding of the Sale of Goods Act, 1930”.

He had said that the transfer of shares to him, which permitted him to join and remain a member of BharatPe for nearly five years, showed that Nakrani not only delivered the shares to him on July 2, 2018, but also never reserved any right of disposal whatsoever.

Grover’s reply before the single-judge contends that the contract has been performed in its entirety, the share transfer form has been executed and Grover’s name has been entered into the register of shareholder.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.