Today (22 Feb), the Delhi High Court concluded an appeal lodged by Shashvat Nakrani, co-founder of BharatPe, regarding a ruling that declined to prevent the company’s ex-Managing Director, Ashneer Grover, from selling or transferring the shares Nakrani had sold to him. The Court expedited the trial of Nakrani’s case under the supervision of a single judge and established deadlines for framing issues and recording evidence.
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NEW DELHI: The Delhi High Court resolved an appeal initiated by Shashvat Nakrani, co-founder of BharatPe, challenging a ruling that denied the prevention of the company’s former Managing Director, Ashneer Grover, from selling or transferring the shares Nakrani had previously sold to him.
While the Division Bench of Justices Rajiv Shakdher and Amit Bansal upheld the single-judge’s order, they hastened the trial proceedings for Nakrani’s case. After both parties’ legal representatives presented arguments for a period, they mutually agreed that the appeal could be settled with instructions for a swift trial process.
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Therefore, the Bench instructed the single-judge to delineate the issues in the case on February 28, the next scheduled hearing date.
Additionally, the Court designated a local commissioner for the recording of evidence, mandating completion within eight weeks. It directed both parties to submit affidavits of evidence concerning the issues identified by the single-judge. Following the evidence recording, the single-judge is tasked with expeditiously conducting final arguments, as emphasized by the Division Bench.
“All legal matters remain unresolved,”
-court clarified.
Shashvat Nakrani was represented by Senior Advocate Mukul Rohatgi, alongside Advocates Ankit Jain, Mohit Goel, Sidhant Goel, and Neha Jain. Ashneer Grover’s legal counsel included Advocates Giriraj Subramanium, Sidhant Juyal, and Simarpal Sawhney.
Nakrani had appealed against the December 15, 2023 ruling of single-judge Justice Sachin Datta, who dismissed Nakrani’s interim plea to restrain Grover from selling or transferring the shares.
In rejecting the plea, Justice Datta instructed Grover to notify the Court of any intention to sell or transfer the shares in question. Nakrani’s contention was that although he transferred his shares to Grover, the latter purportedly paid for them in cash, which Nakrani never received.
According to reports, BharatPe was founded by Shashvat Nakrani and Bhavik Koladiya in March 2018, each owning a 50% stake. Grover joined as a third co-founder and board member in July 2018, purchasing 3,192 shares (2,447 from Nakrani and 745 from Koladiya at Rs 10 each).
Reports suggested Grover owed Rs 24,470 to Nakrani and Rs 7,450 to Koladiya for the shares, but payments are allegedly outstanding. Individuals familiar with the situation claim the shares are currently valued at Rs 500 crore.
Grover rebutted these claims, asserting Nakrani’s case stems from a misinterpretation of the Sale of Goods Act, 1930. He contends that the shares were transferred to him, allowing him to become and remain a BharatPe member for nearly five years, indicating Nakrani delivered the shares on July 2, 2018, without reserving any disposal rights.
Grover’s submission to the single-judge argues the contract has been fully executed, the share transfer form is complete, and his name is listed in the shareholder register.
CASE TITLE:
Shashvat Nakrani v Ashneer Grover.
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