NCLT directs Grover to establish maintainability of plea against BharatPe

The case will next be heard by the New Delhi bench of the National Company Law Tribunal (NCLT) on January 11

The National Company Law Tribunal (NCLT) on Wednesday directed former BharatPe managing director Ashneer Grover to establish the maintainability of his petition filed against the fintech giant.

The plea, filed by Grover, seeks relief from actions taken by the company against him, his wife and Madhuri Jain, former head of controls at BharatPe.

Grover filed the case in January this year, pleading to declare the actions of the then-board chairman Rajnish Kumar-led BharatPe's management as being "against the interests of the company". Grover also challenged the termination of Madhuri Jain as the head of the company's head of controls and pleaded for the revocation of the same.

To this, the NCLT asked the petitioner to produce existing judgments that show whether preference shares should not be treated as equity shares, while accounting for shareholding of a company. Failing this, the tribunal will dismiss the petition by Grover.

On Wednesday, the NCLT heard arguments on the quantum of stake Grover, who is also the founder of BharatPe, holds in the company. 

Arguing for Grover, Giriraj Subramanium said that compulsorily convertible preference shares (CCPS) issued to other investors of the fintech company did not have equivalence with equity shares. Following this, the tribunal asked the counsel to submit precedents.

Seeking relief under Section 241 and Section 242 of the Companies Act 2013, Subramanium said that relief could be granted to Grovers because the ex-MD held more than 40 per cent of equity shares of the fintech major.

The New Delhi bench of the NCLT will next hear the case on January 11.