Karnataka HC dismisses Qatar Holding's plea against Byju Raveendran, but orders status quo on Aakash shares

Mint

28-04-2025

The Karnataka High Court has dismissed Qatar Holding's plea seeking to restrain Byju's co-founder Byju Raveendran and Byju's Investments from transferring of assets worth $235 million, including shares in Aakash Educational Services Ltd (Aakash Institute), bringing relief to the embattled edtech founder.
The order, delivered by Justice Ashok S. Kinagi on 16 April and reviewed by Mint, held that Qatar Holding must pursue further remedies before the arbitral tribunal constituted under the Singapore International Arbitration Centre (SIAC) Rules.
Nonetheless, the high court granted partial interim relief to Qatar Holding by directing that the status quo regarding the alienation of the disputed shares be maintained for three months.
The court stated in its judgement, 'The petitions are rejected; however, liberty is reserved to the petitioner to apply either before the Emergency Arbitrator or the Arbitral Tribunal for interim relief. Meanwhile, the interim orders, undertaking, and status quo shall continue for three months."
The dispute centers around Byju's $1 billion acquisition of Aakash Institute at the height of the covid pandemic in 2021 — the company's largest deal to date. To fund the acquisition, Byju's Global Pte Ltd entered into a share security agreement with Qatar Holdings, supported by a personal guarantee from Raveendran.
Under the terms of the agreement, Byju's was obligated to repay $300 million by 31 March 2025. However, in February 2024, Qatar Holding terminated the agreement, alleging defaults, and demanded immediate repayment of $235.18 million. It subsequently initiated arbitration proceedings at SIAC on 7 March 2024. On 28 March an emergency arbitrator barred Byju's from disposing of assets up to the claimed amount, and the award was later enforced by the Singapore High Court.
Although Raveendran submitted affidavits disclosing his assets, Qatar Holding argued that the disclosures were incomplete, particularly concerning the Aakash shares. It also pointed out inconsistencies in Raveendran's statements, saying he initially declared the Aakash shares as part of his assets but later claimed their inclusion had been an error.
Following this, Qatar Holding approached the Karnataka High Court seeking interim protection over the disputed shares. While refusing to grant the main relief it sought, Justice Kinagi noted that Raveendran had taken contradictory positions regarding ownership of the Aakash shares. "A litigant may adopt different positions at different times, but cannot take contradictory stands in the same case. A party cannot approbate and reprobate on the same facts. Such inconsistency reflects poorly on a party's conduct," the court said.
Although the petition was dismissed, the high court enforced a status quo for three months, offering Qatar Holding temporary protection pending further developments before the SIAC tribunal.
Byju's has also been facing insolvency proceedings in by the National Company Law Tribunal (NCLT) since 16 June 2024, after it defaulted on a ₹ 158-crore payment to the Board of Control for Cricket in India (BCCI) under a sponsorship agreement.
Founded in 2011 by Raveendran and Divya Gokulnath, Byju's was once India's most celebrated edtech startup, achieving unicorn status and attracting global investors.
However, aggressive expansion, financial troubles, regulatory scrutiny, and disputes with creditors have since plunged the company into crisis, with lenders' total claims against it rising to $1.5 billion.
Byju Raveendran currently lives in Dubai while his brother Riju is based in London.
First Published: 28 Apr 2025, 05:01 PM IST