Delhi High Court summons Ashneer Grover on BharatPe co-founder Shashvat Nakrani’s suit on unpaid shares claim

Delhi High Court summons Ashneer Grover on BharatPe co-founder Shashvat Nakrani’s suit on unpaid shares claim

The case will be heard on March 28 on the issue of interim relief

The Delhi High Court has issued a summons to Ashneer Grover, former managing director of fintech firm BharatPe, in a suit filed by the company’s co-founder Shashvat Nakrani related to claims of unpaid shares.

Appearing for Nakrani, senior advocate Neeraj Kishan Kaul argued that in a similar case filed by another co-founder Bhavik Koladiya, the court had issued a summons and asked Grover to not create any third-party rights over the shares.

While seeking an interim order, Kaul said that Grover’s stand was that he paid for the shares in cash.

The bench of Justice Sachin Datta however, noted the suit was filed nearly five years after the shares were transferred.

The court asked advocate Giriraj Subramanium, the counsel for Grover if he was ready to make a statement that no third-party rights would be created over the shares.

When Subramanium stated he was instructed against making such a statement, the court said the case would be considered on March 28. It also issued a notice on Nakrani’s application seeking to file some documents in a sealed cover.

Nakrani is the second BharatPe founder to move the court against Grover. Koladiya’s suit seeking to reclaim shares, which he transferred to Grover, his former colleague, is still pending before another bench of the high court. The court had issued a summons to Grover over it, early this year.

Koladiya and Nakrani founded the fintech firm in 2017. A year later, Grover came on board after being appointed as the chief executive.

Meanwhile, it is reported that Koladiya, the largest shareholder in the company, allegedly left due to his past conviction in the United States in a credit card fraud case, which was hindering talks with the investors. Thereafter, he resigned and transferred his shares to Grover, Nakrani, the latter’s father Mansukhbhai Mohanbhai Nakrani, and some other early-stage and angel investors.

Koladiya agreed to transfer 1,611 of his 2,900 shares (which are now 16,110 shares) to Grover by way of 3 December 2022 agreement. The consideration for the transfer of the 1,611 shares was approximately Rs.88 lakh. He claimed that until now, Grover had not paid the purchase consideration.

Between February and early March 2022, Grover began claiming property in the 16,110 shares by publicly proclaiming himself to be the single-largest shareholder of BharatPe. On request by Koladiya to return the shares, Grover refused. This prompted Koladiya to approach the high court.

Presently, 3.10 percent of the 8.43 percent shareholding of BharatPe, which Grover claims to be in his ownership, is subject to the outcome of the case.

Nakrani was represented through senior advocate Neeraj Kishan Kaul along with advocates Raghvendra M Bajaj, Mohit Goel, Siddhant Goel, Garima Bajaj, Deepankar Mishra, Karmanya Dev Sharma, Nikhil Bamal and Karan Kumar.