Introduction
In an intriguing turn of events, Rishabh Telang, a co-founder of the renowned fitness platform Cult.fit, has approached the Karnataka High Court. His legal move aims to quash a forgery FIR filed against him just as the company is preparing for its initial public offering (IPO). The case, filed by his brother-in-law, Deepak Poduval, has sparked significant attention in the business and legal communities.
Details of the Legal Proceedings
Justice M Nagaprasanna presided over the hearing in the Karnataka High Court, issuing notices to both the state and the complainant, Deepak Poduval. Although the court did not grant an interim stay on the ongoing investigation, it requested responses to Telang’s petition. The next hearing is scheduled for September 2.
Background of the Case
The dispute originated from a complaint by Poduval, who is not only Telang’s brother-in-law but also a co-founder of Cult Fitness Private Limited. According to Poduval, the conflict began with the alleged forgery of documents related to the transfer and closure of the original Cult business. Filed by the Bellandur Police on August 6, the FIR accuses Telang of forging signatures and other documents to misappropriate the business assets to Cultfit Healthcare Private Limited, established in August 2016.
Allegations and Counterarguments
Poduval claimed that he and Telang each held a 50% stake in Cult Fitness, incorporated in November 2015. However, he alleges that Telang later ousted him from the company’s management and diverted all business activities to a new entity. The FIR includes charges such as criminal breach of trust, cheating, forgery, and criminal conspiracy, alongside Section 66D of the Information Technology Act.
In his defense, Telang’s legal team contended that the complaint was belated and contradicted by existing documents. They revealed that Poduval had even signed assignment deeds in 2017 transferring the company’s trademarks and intellectual property. Furthermore, Telang argued that Poduval had initially sought ₹3 crore and had received approximately ₹1 crore, implying mutual consent in the transactions.
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Underlying Family Dispute
The case appears connected to a more extensive family dispute, as Telang disclosed that his sister, married to Poduval, had already initiated a civil suit against him, successfully obtaining an injunction.
Legal Representation
Senior Advocate Promod Nair, along with advocates Ahaan Mohan and Akanksha Choudhary from Aretha Legal, represented Poduval in court. The case is being closely watched, particularly given its timing with Cult.fit’s IPO plans.
Conclusion
The court’s upcoming decisions will be pivotal, not only for Telang and Poduval but also for the broader implications on Cult.fit’s business trajectory as it ventures into the public market. As the case unfolds, it underscores the complex interplay between business, family, and legal issues.
