The Delhi High Court on Friday disposed of a suit filed by BharatPe Founder Bhavik Koladiya against Ashneer Grover over unpaid shares in light of a settlement between BharatPe and the Grovers. [Bhavik Koladiya v. Ashneer Grover & Anr]
Justice Manmeet Pritam Singh Arora recorded that the terms of the settlement dated September 30 have been performed by the Grovers.
The Court noted that though the subject matter of the suit was 18,189 shares, Koladiya has settled the dispute on receiving transfer of 15,000 shares from Ashneer Grover.
By the end of the hearing, intimation was received by Koladiya’s counsel that the share certificate of the 15,000 share transfer has been issued.
Accordingly, Justice Arora disposed of the suit, connected applications and interim orders passed in this suit. The Court noted that there is no further obligation, except for the future obligation on the parties to not defame each other.
As per the last funding round of BharatPe, the value of the shares returned to Koladiya is approximately ₹ 550 crores (equivalent to US$ 70 Million).
Koladiya founded BharatPe in 2017 with Shashvat Nakrani. In 2018, they started looking for a chief executive, after which Grover came on board.
According to a news report in The Economic Times, Koladiya (the largest shareholder in the company) had to leave the company allegedly because his past conviction in the United States in a credit card fraud case was hindering talks with investors.
As he resigned, Koladiya transferred his shares to Grover, Nakrani and one Mansukhbhai Mohanbhai Nakrani, as well as some other early-stage and angel investors.
Koladiya agreed to transfer 1,611 of his 2,900 shares (which are now 16,110 shares) to Grover by way of an agreement dated December 3, 2022. The consideration for the transfer of the 1,611 shares was approximately ₹88 lakh. He has claimed that Grover had not paid the purchase consideration.
Between February and early March 2022, Grover started claiming property in the 16,110 shares (which later became 18,189 shares) by publicly proclaiming himself to be the single largest shareholder of BharatPe. Grover refused to return Koladiya's shares when requested, prompting the latter to move the High Court.
Counsel for Koladiya had filed an application seeking withdrawal of the suit against Ashneer Grover and the others in the light of the compromise dated September 30.
In the settlement, Bhavik Koladiya was represented by Mohit Goel and Sidhant Goel Senior Partners from Sim And San, who were assisted by Deepankar Mishra, Managing Associate, Aishna Jain, Senior Associate and Aditya Maheshwari, Associate.
Ashneer Grover was represented by Giriraj Subramanium and Shonak Sharma.
Mohit Goel and Sidhant Goel appeared for Bhavik Koladiya.
Giriraj Subramanium appeared for Ashneer Grover.