Payment Predicament: Understanding Nakrani’s Allegation of Non-Payment for Sold Shares
Introduction:
In a recent development, the Delhi High Court delivered a verdict on an interim application filed by BharatPe co-founder Shashvat Nakrani. The application sought to restrain the fintech unicorn’s former managing director, Ashneer Grover, from selling or alienating shares that were originally sold to him by Nakrani.
Background:
The shares in question were part of a transaction between Nakrani and Grover that took place when Grover joined BharatPe as the third co-founder in July 2018. However, a dispute arose as Nakrani claimed that he had not received any payment for the shares he sold to Grover.
Court’s Decision:
A single-judge bench of Justice Sachin Datta dismissed Nakrani’s plea but introduced a directive that requires Grover to inform Nakrani when he decides to sell or transfer the disputed shares. While the court rejected the immediate restraining order, the decision to keep Nakrani informed during any future share transactions adds an interesting layer to the ongoing dispute.
Implications:
The court’s decision raises questions about the nature of the transaction between Nakrani and Grover and the validity of Nakrani’s claim of non-payment. The directive for Grover to notify Nakrani during any share sales or transfers suggests a cautious approach by the court, acknowledging the complexity of the matter.
Key Points:
- Disputed Transaction: The shares were initially sold by Nakrani to Grover when the latter joined BharatPe in 2018. The dispute arose when Nakrani alleged non-payment for the shares.
- Court’s Verdict: The Delhi High Court dismissed Nakrani’s plea for an immediate restraint on Grover but mandated that Grover must inform Nakrani before selling or transferring the disputed shares.
- Ongoing Dispute: The court’s decision leaves room for further legal proceedings to determine the resolution of the payment dispute between Nakrani and Grover.
Conclusion:
The Delhi High Court’s recent decision adds a new chapter to the ongoing dispute between BharatPe co-founders Shashvat Nakrani and Ashneer Grover. While the immediate plea for restraining Grover was rejected, the directive for communication during share transactions suggests a nuanced approach by the court. As the legal proceedings unfold, the fintech industry and interested stakeholders will closely watch how this dispute evolves and its potential impact on BharatPe’s future.