BharatPe Files Court Petition Against Centrum and JBCG
BharatPe, through its parent company Resilient Innovations Private Limited, has taken legal action against Centrum Financial Services Limited and JBCG Advisory Services Private Limited. The dispute involves the alleged unauthorized transfer and encumbrance of warrants issued by Unity Small Finance Bank, a contentious issue now before the Delhi High Court.
Legal Framework and Interim Relief Sought
The case was initiated under Section 9 of the Arbitration and Conciliation Act, 1996. BharatPe seeks interim orders to prevent JBCG and Centrum from transferring, marketing, or encumbering Series 1 and Series 2 warrants of Unity Bank without its explicit written consent. Additionally, the petition aims to restrict Unity Bank from recognizing or facilitating any such unauthorized transactions.
Court Proceedings and Timeline
On September 9, Justice Tushar Rao Gedela issued a notice concerning this matter. The respondents have been given a two-week timeline to respond, followed by a three-day period for BharatPe to file a rejoinder. The next hearing is scheduled for October 1.
Background and Allegations
The dispute traces back to 190 crore warrants allocated to Centrum in November 2021. BharatPe holds a 49% stake in Unity Bank, while Centrum controls 51%. BharatPe claims to have invested approximately ₹746 crore towards settling liabilities of the former Punjab and Maharashtra Cooperative Bank.
According to the allegations, JBCG transferred around 6.74 crore Series 1 warrants and 4 crore Series 2 warrants. Furthermore, JBCG and Centrum allegedly created encumbrances on 15 crore Series 1 warrants and about 16.92 crore Series 2 warrants, all without BharatPe’s consent. The petition details a transaction where JBCG reportedly pledged 8 crore Series 2 warrants to Vistra ITCL (India) Limited, acting as trustee for UTI Alternatives. BharatPe claims JBCG raised ₹200 crore through these warrants and later transferred 4 crore of them to UTI Alternatives schemes.
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Financial Implications
The petition also reveals significant discrepancies in warrant pricing. Centrum initially subscribed to the warrants at a nominal price of Re 0.01 each, later transferring 50 crore warrants to JBCG at Re 0.16 each. BharatPe asserts that JBCG subsequently marketed these warrants at approximately ₹26 each.
Arbitration and Legal Representation
BharatPe invoked arbitration on August 11, appointing former Supreme Court judge Justice Vineet Saran as its nominee arbitrator. This move follows an earlier Section 9 petition where the Delhi High Court restrained the respondents from converting the Series 1 warrants.
Legal Teams
BharatPe is represented by a legal team from Sim & San, including Advocates Mohit Goel, Sidhant Goel, Anuj B, Deepankar Mishra, Aisha Jain, Shashwat Mukherjee, Ishaan Pratap Singh, Suradish Vats, and Darpan Sachdeva. JBCG’s defense is headed by Senior Advocate Rajshekhar Rao, with Advocates Ashish Aggarwal and Nalin Dhingra. Centrum’s legal team comprises Advocates Ajay Monga and Amol Sharma, while Unity Bank is represented by Advocates Sanjay Gupta, Ateev Mathur, and Jagriti Ahuja.
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The legal community and stakeholders eagerly await further developments in this high-stakes financial litigation.
