Delhi HC Issue Summons To Ashneer Grover On Suit Over Unpaid Share Claims By BharatPe Co-Founder

The Delhi High Court on Friday issued summoned to Ashneer Grover, former Managing Director (MD) of BharatPe, in a suit filed by the company’s co-founder Shashvat Nakrani over unpaid share claims.

A single bench of Justice Sachin Datta has listed the matter for further hearing on March 28, 2023, on the issue of interim relief sought by Nakrani.

Appearing for Nakrani, Senior Advocate Neeraj Kishan Kaul contended that in a similar action brought by another co-founder, Bhavik Koladiya, the Court issued summons and urged Grover not to create any third-party rights over the shares.

Grover’s position, according to Advocate Kaul, is that he paid for the shares in cash.

The bench observed, as Kaul urged for an interim order, that the claim was filed over five years after the shares were said to have been transferred.

Grover’s counsel, Advocate Giriraj Subramanium, was asked by Judge Datta if he was willing to make a declaration that no third-party rights would be formed over the shares.

Advocate Subramanium claimed that he was not authorized to make such remarks.

The bench then stated that the application for temporary relief will be consider at the next hearing.

“Plaintiff has been heard at some length in the interim relief application. Counsel for the defendant says they don’t want to file a response to the application. List on Tuesday for further arguments,” the court ordered.

The single bench also issued a notice in response to Nakrani’s request to file some documents in a sealed cover.

Nakrani is the second BharatPe founder to take Grover to court.

Bhavik Koladiya’s suit to retrieve shares he transferred to his former colleague is still pending before another High Court bench.

In January, Grover was issued summons in this case.

In 2017, Koladiya and Nakrani started the fintech company. Grover joined the company in 2018, when they began seeking for a Chief Executive.

According to some sources, Koladiya (the company’s major stakeholder) was forced to quit because his prior conviction in the United States in a credit card fraud case was impeding discussions with investors.

Koladiya transferred his shares to Grover, Nakrani, and one Mansukhbhai Mohanbhai Nakrani, as well as some other early-stage and angel investors, when he resigned.

By agreement dated December 3, 2022, Koladiya agreed to transfer 1,611 of his 2,900 shares (which are now 16,110 shares) to Grover. The transfer of the 1,611 shares cost roughly Rs 88 lakhs. He alleges that Grover has yet to pay the purchase consideration.

By February and early March 2022, Grover began claiming ownership of the 16,110 shares by publicly declaring himself to