Delhi High Court Refuses To Restrain Ashneer Grover From Creating Third Party Rights In 'Unpaid Shares' Of BharatPe Co-Founder Shashvat Nakrani

The Delhi High Court on Friday refused to restrain BharatPe's former Managing Director Ashneer Grover from creating any third party rights in the “unpaid shares” which he bought from fintech company's co-founder Shashvat Nakrani.

Justice Sachin Datta rejected the interim application moved by Shashvat Nakrani in his suit against Ashneer Grover seeking to restrain him from alienating, transferring or creating any third part rights in the unpaid shares.

“Thus, the factum and extent of the shareholding of the defendant herein, stands admitted in that suit. This additional aspect, also disentitles the plaintiff to any interim relief,” the court said.

However, the court directed Grover that if and when he proposes to transfer or decides to alienates the shares in question, prior intimation has to be provided to the court.

Justice Datta also observed that there was nothing to indicate that unless and until, Nakrani received the full price for the shares, the property in them would pass to Grover and the same would continue to vest in Nakrani.

“The fact that the sale and transfer of shares stands concluded in the present case is also evident from the fact that admittedly, there is no reservation of right of disposal in favour of the seller of the goods (i.e. the plaintiff),” the court said.

The fintech company was found by Bhavik Koladiya in 2017 along with Shashvat Nakrani. Thereafter, Grover joined the company in 2018 as the third co-founder.

Earlier this year, a similar suit was filed by Koladiya seeking to restrain Grover from creating any third party rights in respect of his shares in BharatPe.

Grover had orally assured court that he will not make any third party interest in 16,110 shares transferred to him by Koladiya and in any rights that accrue to him as a consequence thereof, subject to further judicial orders.

Advocates Giriraj Subramanium, Simarpal Singh Sawhney, Akhilesh Talluri and SiddantJuyal appeared for Ashneer Grover.

Shashvat Nakrani's suit has been filed through Advocates Raghavendra Mohan Bajaj and Garima Bajaj.

Title: Shashvat Nakrani v. Ashneer Grover

Citation: 2023 LiveLaw (Del) 1292

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