Delhi High Court disposes of Shashvat Nakrani appeal against refusal to restrain Ashneer Grover from selling BharatPe shares

The Delhi High Court on Thursday disposed of an appeal filed by BharatPe co-founder Shashvat Nakrani against an order refusing to restrain the firm's former Managing Director Ashneer Grover from selling or alienating the shares in the company that Nakrani sold to him [Shashvat Nakrani v Ashneer Grover]. .A Division Bench of Justices Rajiv Shakdher and Amit Bansal did not disturb the single-judge's order, but expedited the trial of Nakrani's case. Counsel for both parties argued the case for some time, but then reached a consensus that the appeal can be disposed of with directions for expeditious trial. .The Bench, therefore, asked the single-judge to frame the issues in the matter on February 28, when the case will be heard next. The Court also appointed a local commissioner for recording of evidence and said that this process should be completed in eight weeks. It asked both sides to file affidavits of evidence on the issues being framed by the single-judge.After recording of evidence, the single-judge shall endeavour to hear final arguments in the matter as early as possible, the Division Bench added. "All questions of law are left open," it said. .Nakrani was represented by Senior Advocate Mukul Rohatgi along with Advocates Ankit Jain, Mohit Goel, Sidhant Goel and Neha Jain.Grover was represented by Advocates Giriraj Subramanium, Sidhant Juyal and Simarpal Sawhney..Nakrani had filed an appeal against the December 15, 2023 order of single-judge Justice Sachin Datta, who rejected an interim application filed by Nakrani to restrain Grover from selling or alienating the shares. While dismissing the plea, Justice Datta asked Grover to intimate the Court when he decides to sell or transfer the shares in question..It was Nakrani's case that he had transferred his shares to Grover and while the latter claimed to have paid for them in cash, the money was never received.According to news reports, BharatPe was founded by Shashvat Nakrani and Bhavik Koladiya in March 2018, with each owning 50% in the firm. Grover joined the company as a third co-founder and board member in July 2018, and purchased 3,192 shares (2,447 from Nakrani and 745 from Koladiya for ₹10 apiece).The same report claimed that Grover was to pay ₹24,470 to Nakrani and ₹7,450 to Koladiya. However, it claimed that Grover is yet to pay for the shares.People familiar with the matter say that the shares in question are worth ₹500 crore now..Grover refuted the assertions, claiming that Nakrani's case is based on a complete "misreading, misinterpretation and misunderstanding of the Sale of Goods Act, 1930".He had said that the transfer of shares to him, which permitted him to join and remain a member of BharatPe for nearly five years, showed that Nakrani not only delivered the shares to him on July 2, 2018, but also never reserved any right of disposal whatsoever.Grover's reply before the single-judge contends that the contract has been performed in its entirety, the share transfer form has been executed and Grover's name has been entered into the register of shareholder.