New Delhi [India], October 16 (ANI): The Delhi High Court has declined interim relief to Robin Raina, the former CEO of Ebix, Inc who has in his petition claimed entitlement to 50 per cent shareholding in Eraaya Lifespaces Ltd. Raina has also sought reinstatement and possession of a company-owned farmhouse, arguing that he had led the company for nearly 20 years
Raina moved High Court recently, based on a consortium agreement dated August 16, 2024, which he alleged had been breached by Eraaya and Vikas Lifecare Ltd. His suspension from Eraaya’s board on September 27, 2024, for financial irregularities is currently under internal investigation.
Raina through his advocates argued that he was at the helm of Ebix for over 20 years and when it went into voluntary insolvency proceedings in USA, he approached Eraaya and Vikas Lifecare to buyout Ebix as a consortium.
He claimed that without his knowledge, despite his being a director, Eraaya called for board meetings and ultimately ousted him with ulterior motives. Raina also repeatedly emphasised his entitlement to an Ebix property in Greater Noida, which he claimed belonged to him and he had an agreement to sell for. However, when the Court appointed a local commissioner to inspect the Ebix property, it was found that Ebix has possession of the property.
During Court proceedings it was alleged that Raina allegedly presented forged document dated August 16, 2024, claiming he needed to invest only USD 25 million for a 50 per cent stake in Eraaya, with 25 per cent as sweat equity.
He further alleged that funds from a US-based entity were meant for him, though the fund had already secured a 2.42 per cent equity stake in Ebix and did not support Raina’s claims.
Representing Eraaya and Vikas, senior advocate Dr. Abhishek Manu Singhvi and Advocate Vijay Aggarwal briefed by Ayush Jindal and Naman Joshi Advocates contested Raina’s claims, labeling him a “disgruntled former employee.”
They highlighted that Raina and a third party, Vitasta Software, had failed to fulfill their obligations under a previous consortium agreement from May 24, 2024, which required raising USD 100 million for the Ebix acquisition.
Adv Vijay Aggarwal argued that the right claimed by Robin Raina is ludicrous because the terms of the document is that Robin Raina for arranging the debt of 500 crores is claiming equity worth 2500 crores. So the document is forged as it would be commercial non sense to agree to such terms, submitted Adv Aggarwal
During proceedings, counsels for Vitasta disavowed any connection to Raina, asserting that the agreement he presented was a forgery. The court emphasized the absurdity of Raina’s claims, noting the financial illogicality of granting him 50 per cent equity based on a mere USD 25 million investment, which was never realized.
In a hearing that went on for over 1.5 hours, other senior counsels including Parag Tripathi, Sandeep Sethi, and Rudreshwar Singh also argued on behalf of various entities against Raina’s case. Senior Advocate Rajiv Nayar, Advocate Sanjay Abbott and Sidhant Kumar appeared for Vitasta in the matter. While Senior Advocates Gopal Jain and Jayant Mehta appeared for Raina.
With no relief granted, the bench of Justice Jasmeet Singh has adjourned the matter to November 20, 2024. (ANI)
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