Delhi High Court fixes Nov 20 for hearing on plea of Ebix CEO Robin Raina, seeks Affidavit from respondents

New Delhi [India], October 16 (ANI): The Delhi High Court, after hearing at length, the submission on behalf of Robin Raina, the CEO of Ebix, Eraaya Lifespaces Ltd and other respondents, fixed the matter for November 20, 2024 and also directed the respondents to file affidavit regarding their stand. Earlier, this news agency had reported erroneously that the Delhi High Court had denied interim relief to Robin Raina. The Delhi High Court is still hearing the matter.

The Court’s direction came while hearing a plea moved by businessman Robin Raina under Section 9 of the Arbitration and Conciliation Act, 1996 seeking interim reliefs arising out of a Consortium Agreement dated 16.08.2024. Raina moved the High Court recently, based on a consortium agreement dated 16.08.2024, which he alleged had been breached by Eraaya and Vikas Lifecare Ltd. His petition also challenges his suspension from Eraaya’s board on September 27, 2024 for alleged financial irregularities, which have not been spelt out.

 Raina’s counsel argued that after leading Ebix for over 20 years, a consortium of Raina, Vitasta Software, Eraaya and Vikas Lifecare acquired Ebix amidst its voluntary bankruptcy proceedings in the U.S. He claimed that he had arranged for funds of over USD 25 million, in lieu of which he was entitled to a 50% stake in Eraaya, which was the company that acquired Ebix. After the acquisition of Ebix, he was denied his entitlement to 50% of the shareholding in Eraaya. He was then ousted without notice at Eraaya’s Board meeting. Raina’s counsel also pointed out that respondents were harassing him by attempting to dispossess him from an Ebix property in Greater Noida, which he has been occupying for over 12 years as Chairman and CEO of Ebix.

 Representing Eraaya and Vikas, senior advocate Dr. Abhishek Manu Singhvi and Advocate Vijay Aggarwal briefed by Ayush Jindal and Naman Joshi 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.

The counsel for Vitasta disavowed any connection to Raina, asserting that the agreement he presented was a forgery.

Despite Raina’s assertions of arranging third-party funding, opposing counsel  claimed that he had not contributed any capital. They also claimed that Raina was aware of the Board meeting at which he was suspended.

 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 contesting Raina’s case. Senior Advocate Rajiv Nayar, Advocate Sanjay Abbott and  Sidhant Kumar appeared for Vitasta in the matter. Senior Advocates Gopal Jain and Jayant Mehta appeared for Raina.

The bench of Justice Jasmeet Singh noted that the respondents have appeared on caveat and have contested the genuineness of the Consortium Agreement on various grounds, including that the same was never signed or executed by any of the respondents. The bench directed that the stand of the respondents must be put on an affidavit or reply, and granted time to Raina to file a rejoinder. The Court has fixed the matter now for hearing on November 20, 2024. (ANI)