Latest news with #QatarHolding
Mint
28-04-2025
- Business
- Mint
Karnataka HC dismisses Qatar Holding's plea against Byju Raveendran, but orders status quo on Aakash shares
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
United News of India
28-04-2025
- Business
- United News of India
Byju gets temporary relief in legal battle with Qatar Holding
Bengaluru, Apr 28 (UNI) In a significant development, the Karnataka High Court has rejected petitions filed by Qatar Holding LLC seeking to restrain Byju Raveendran and Byju's Investments from disposing of assets worth USD 235 million, including shares in Aakash Educational Services Limited. This decision brings temporary relief to Byju's but also shifts the legal battle to the Singapore International Arbitration Centre (SIAC), where the company now faces intense scrutiny. Justice Ashok S Kinagi, while dismissing the petitions under Section 9 of the Arbitration and Conciliation Act recently, observed that since an arbitral tribunal under the SIAC Rules had already been constituted, Qatar Holding must now approach the tribunal for interim relief instead of seeking intervention from Indian courts. "The petitions are rejected; however, liberty is reserved to the petitioner to make necessary application either before the Emergency Arbitrator or the Arbitral Tribunal," the Court ordered. To safeguard Qatar Holding's interests, the Court directed that undertakings, interim orders, and status quo arrangements already in place would continue for a limited period of three months. The dispute arose after Qatar Holding, which financed Byju's acquisition of Aakash Institute with USD 150 million in 2022, terminated its financing arrangement citing defaults and demanded early repayment of over USD 235 million. Following this, Qatar Holding initiated arbitration proceedings at SIAC and secured an emergency award restraining Byju's from alienating certain assets. The Karnataka High Court noted that Byju Raveendran had taken inconsistent stands regarding the ownership of Aakash shares, warning that such contradictory conduct was unsatisfactory and attracted the doctrine of estoppel. "A litigant can take a different stand at different times, but cannot take a contradictory stand in the same case," Justice Kinagi observed while criticising the conflicting affidavits submitted by Raveendran. Senior advocate Uday Holla appeared for Qatar Holding, while senior advocate Promod Nair represented Byju's. The Court made it clear that any further clarifications or interim protections must now be sought before the SIAC tribunal, as the arbitral tribunal enjoys the same powers as courts under the Arbitration Act. The Karnataka High Court's order grants Byju's a three-month status quo on asset sales but significantly escalates the stakes. With fund-raising avenues restricted and credibility under scrutiny, Byju's must now defend itself vigorously in the arbitration, facing mounting pressure to either settle its USD 235 million dispute or restructure its financial obligations. UNI BDN CS
