delhi hc ashneer grover: HC rejects BharatPe cofounder Nakrani’s interim plea to stop Grover from selling shares

The court asked Grover, who is also a cofounder, to inform Nakrani if and when he planned to sell those shares.

The plea seeking interim relief was part of a broader case where Nakrani is trying to get the shares back from Grover.

On a similar plea filed by the fintech firm’s other cofounder, Bhavik Koladiya, the high court had earlier issued an interim order restricting Grover from creating any third-party rights on the shares. In his petition filed before a single-judge bench in March, Nakrani had cited this order and sought the same relief.

Appearing for Grover, counsel Giriraj Subramanium argued on Friday that Nakrani’s case was based on a “misreading, misinterpretation and misunderstanding of the Sale of Goods Act, 1930”.

In a post on microblogging platform X, Nakrani said: “I respect the order of the court passed today. I hv (have) been told by my lawyers that (the) court has asked Mr. Grover to intimate the court before selling the shares as I hv a claim of damages equal to (the) market value of the shares. Therefore, it is an order which protects my interest as well.”

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He also said the trial in the case filed in March would continue as Friday’s was an interim order. “…I am confident that we will be able to prove our case in trial. I have full faith in the legal system,” he added.

In a post on X, Grover said: “I am highly indebted to hon’ble high court to pass this order (I’ve just been informed of [the] order read out in court) in my favour and protecting my equity.”

“We as founders work hard to create ‘equity’ value and this order shall go a long way in protecting (the) rights of founders in India. More importantly, it’ll teach an important lesson to cofounders to respect each other’s equity and not break the ‘bro – code’,” Grover wrote.

After joining the firm as its third cofounder, Grover bought shares from Koladiya and Nakrani, and was to pay the two cofounders.

Koladiya had separately sued Grover to reclaim his shares in Resilient Innovations, the parent entity of BharatPe, saying Grover had not paid for the shares as per the agreement.

Koladiya had founded the fintech firm in 2017 with Nakrani, his schoolteacher’s son. In 2018, they began searching for a chief executive for the company and eventually joined hands with Grover.

Shortly thereafter, Koladiya, who held a 30.21% stake in the company, had to exit the cap table owing to his past conviction for credit card fraud in the US, ET had earlier reported.

Separately, Grover and BharatPe are at loggerheads over other legal fora including the Delhi High Court and the National Company Law Tribunal. The company had sacked Grover citing financial irregularities, which he has denied.

The court asked Grover, who is also a cofounder, to inform Nakrani if and when he planned to sell those shares.

The plea seeking interim relief was part of a broader case where Nakrani is trying to get the shares back from Grover.

On a similar plea filed by the fintech firm’s other cofounder, Bhavik Koladiya, the high court had earlier issued an interim order restricting Grover from creating any third-party rights on the shares. In his petition filed before a single-judge bench in March, Nakrani had cited this order and sought the same relief.

Appearing for Grover, counsel Giriraj Subramanium argued on Friday that Nakrani’s case was based on a “misreading, misinterpretation and misunderstanding of the Sale of Goods Act, 1930”.

In a post on microblogging platform X, Nakrani said: “I respect the order of the court passed today. I hv (have) been told by my lawyers that (the) court has asked Mr. Grover to intimate the court before selling the shares as I hv a claim of damages equal to (the) market value of the shares. Therefore, it is an order which protects my interest as well.”

Discover the stories of your interest

ETtech

He also said the trial in the case filed in March would continue as Friday’s was an interim order. “…I am confident that we will be able to prove our case in trial. I have full faith in the legal system,” he added.

In a post on X, Grover said: “I am highly indebted to hon’ble high court to pass this order (I’ve just been informed of [the] order read out in court) in my favour and protecting my equity.”

“We as founders work hard to create ‘equity’ value and this order shall go a long way in protecting (the) rights of founders in India. More importantly, it’ll teach an important lesson to cofounders to respect each other’s equity and not break the ‘bro – code’,” Grover wrote.

After joining the firm as its third cofounder, Grover bought shares from Koladiya and Nakrani, and was to pay the two cofounders.

Koladiya had separately sued Grover to reclaim his shares in Resilient Innovations, the parent entity of BharatPe, saying Grover had not paid for the shares as per the agreement.

Koladiya had founded the fintech firm in 2017 with Nakrani, his schoolteacher’s son. In 2018, they began searching for a chief executive for the company and eventually joined hands with Grover.

Shortly thereafter, Koladiya, who held a 30.21% stake in the company, had to exit the cap table owing to his past conviction for credit card fraud in the US, ET had earlier reported.

Separately, Grover and BharatPe are at loggerheads over other legal fora including the Delhi High Court and the National Company Law Tribunal. The company had sacked Grover citing financial irregularities, which he has denied.