Delhi High Court asks Ashneer Grover to file undertaking in suit by Bhavik Koladiya [18.1.2023]

The Delhi High Court on Wednesday told BharatPe's former Managing Director Ashneer Grover to file an undertaking in a week's time in connection with a suit filed by the fintech company's co-founder Bhavik Koladiya along with an interim application, restraining Grover from creating any third party rights in respect of the shares.

To that, Grover informed that subject to further directions from the court, he will not make any third party interest in the 16,110 shares that Koladiya transferred to him and in any rights that accrue to him as a consequence thereof.

A single-judge bench of Justice Prateek Jalan ordered that Grover will be bound by his statement and directed him to file the undertaking.

The court also served summonses on Grover and the fintech company, giving the former four weeks to respond to the application for an ad interim injunction and two weeks for a rejoinder to the same.

The bench noted: "D1 (Grover) is bound to the aforesaid statement and is directed to file an undertaking to this effect within one week from today. Reply to application in four weeks, rejoinder in two weeks thereafter."

The court listed the matter for hearing on March 16.

When Grover's advocate requested to view a photocopy of a letter agreement signed by Koladiya and the defendants, Koladiya's Senior Advocate Mukul Rohatgi responded that Grover's attorney could view the document after coordinating with him.

Koladiya should be given his shares back, according to Rohtagi, since the title in the same has not been passed to Grover.

According to him, Koladiya was in the category of an unpaid seller under the Sale of Goods Act.

Rohtagi said: "Property in the goods title did not pass to him (Grover). Even in 2021, this man on WhatsApp chat showed that shares are still mine. I am an unpaid seller. When title has not passed, you're entitled to get your goods back.

"What has happened is, a transaction without consideration. Indication is clear, I'll give 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?"

Citing two agreements, Grover's advocate said that Koladiya had added a part of the deal he signed with him to the other agreement he signed with other investors.

He argued: "With me the consideration was supposed to be different, 88 lakhs."

After hearing the arguments, the benchA said it is not possible to legally render a final finding now, allegations of fraud will have to be proven at trial.

Furthermore, Rohatgi refuted the Grover advocate's claim that as part of the Rs 88 lakh transaction in question, Grover's wife had transferred a sum of Rs 8 crore to Koladiya's wife.

"There can't be a lie on a lie on a lie," Rohatgi said.

Koladiya in 2017 along with another co-founder Shashvat Nakrani, found the fintech company. In 2018, Grover joined the company as the third co-founder.


18 Jan 2023