PremiumKoladiya, who founded the company with Shashvat Nakrani in 2017, moved the court seeking the return of his 1,600 shares, which has now gone up to 16,110
Former BharatPe co-founder Ashneer Grover on Wednesday told the Delhi high court he would not create any third-party rights of 30% shares co-founder Bhavik Koladiya had in the fintech company.
Koladiya, who founded the company with Shashvat Nakrani in 2017, moved the court seeking the return of his 1,600 shares, which has now gone up to 16,110. He gave up the shares as his conviction in a credit card fraud in the US made investors uncomfortable about investing in the company.
Koladiya ran a grocery store in the US and accepted payments digitally without a license. He was jailed over identity theft and mail fraud. Koladiya was fined $100 and deported to India in 2015.
Justice Prateek Jalan said Grover is bound by his pledge and asked him to file an undertaking in this regard.
“...Grover will, subject to further orders of the court, not create any third party interest in the suit shares and in any rights that accrue to him as a consequence thereof... [He]...is bound down to the said statement and is directed to file [an] undertaking to this effect within one week... Reply to the application within four weeks, rejoinder within two weeks thereafter," the court said in an oral order.
The court also issued a summons to Grover on a suit by Koladiya, which stated that he had sold to Grover his 1,600 shares, whose total value was around ₹88 lakh, but no money was paid to him.
He said the shares have now gone up to over 16,000, and the title need not pass to Grover, adding that he was asking for his goods which he had given, to be returned.
Koladiya had also sought an interim injunction restraining Grover from creating any third-party rights in the shares, which are the subject matter of the suit. The contentions were opposed by Grover’s counsel, who argued that the documents shown to the court were false and fabricated and that his wife had paid ₹8 crore to Koladiya’s wife.
The judge said he had not seen the agreements in this regard yet. “For a prima facie case, I have to see the signed agreement. [The] Easiest thing for you to do is to show me proof of payment of shares."
Koladiya’s lawyer, senior advocate Mukul Rohatgi, argued his client does not have money and is entitled to get back the shares as BharatPe is an unlisted company.
As the court asked why Koladiya gave away his shares, senior advocate Mukul Rohatgi, appearing for Koladiya, said he is a gullible person.
During the proceedings, senior advocate Rohatgi submitted that his client is entitled to get his shares back, which he had transferred as the title in the same has not been passed to Grover. Rohatgi said that Koladiya was in the position of an unpaid seller within the meaning of the Sale of Goods Act.
He submitted that the transaction in question did not conclude the way it was intended to be in terms of the agreement, and his client is thus entitled in law to treat the same as a case where the title has not passed to Grover, thus making him entitled to get his shares back.
“What has happened is a transaction without consideration," he said, adding, “Indication is clear. I will with one hand and take from the other. This is simultaneous.... I’ve done whatever. My client was gullible. There are gullible people; what can I say?"
Countering the submissions, Grover’s counsel referred to two agreements to contend that Koladiya had taken one part from the agreement he signed with Grover and attached it to the other agreement which he signed with the investors.
Grover’s counsel further submitted that his client’s wife had transferred ₹8 crores to Koladiya’s wife, forming part of the transaction of ₹88 lakhs in question, a contention opposed by Rohatgi.
The matter will be next heard on 16 March.