On Friday, the Delhi High Court rejected the request to prevent Ashneer Grover, the former Managing Director of the payment app BharatPe, from selling, transferring, or establishing third-party rights in shares obtained from the company’s co-founder, Shashvat Nakrani. However, the court specified that if Mr. Grover intends to transfer or deal with the shares, advance notice must be provided to the court about the proposed transaction.
Justice Sachin Datta stated, “…this court is not inclined to grant an interim injunction in favor of the plaintiff/applicant (Nakrani), as prayed for. However, considering that the shares of the defendant (Grover) in question are subject matter of the present suit and considering that the plaintiff has also made an alternative prayer seeking damages, it is directed that in case the defendant proposes to transfer/deal with/alienate the shares in question, prior intimation with regard to any such proposed transaction(s) together with details thereof, shall be provided to the court.”
The interim order stemmed from an application by Mr. Nakrani within his ongoing lawsuit, where he seeks a declaration that the alleged oral agreement of July 2018 between him and Mr. Grover concerning 2,447 shares in Resilient Innovations Private Limited (RIPL) stands rescinded and terminated. In the application, Nakrani sought an interim injunction to prevent Grover from disposing of, transferring, or creating any encumbrance on the complainant’s shares.
Nakrani claimed in the suit that, during the execution of the agreement, he did not receive consideration from Grover. He argued that since the purchase consideration was not paid, the property/title in the shares did not pass to Grover, and the transaction should be treated as repudiated.
However, Grover contended that Nakrani failed to demonstrate how a stipulation regarding the time of payment was essential to the contract. He referred to Nakrani’s legal notice, stating that he had agreed to postpone the receipt of consideration.
Following the court’s decision, Grover expressed gratitude on X (formerly Twitter), stating that the order protected his equity and emphasized the importance of founders respecting each other’s equity.
In June 2022, BharatPe co-founder Bhavik Koladiya stepped down, and Grover had joined the company in June 2018, resigning in March 2022.
