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Business Standard
2 days ago
- Business
- Business Standard
NCLAT rejects Byju's plea on Aakash shareholding status quo directive
The National Company Law Appellate Tribunal (NCLAT) has dismissed a petition filed by the resolution professional (RP) of Think & Learn Pvt Ltd (TLPL), the parent firm of edtech major Byju's, which had challenged a National Company Law Tribunal (NCLT) order directing the maintenance of status quo in the shareholding of Aakash Educational Services Ltd (AESL). A two-member Bench of the appellate tribunal, comprising Justice Sharad Kumar Sharma and technical member Jatindranath Swain, said the NCLT's order was a 'consensual' and 'interlocutory' direction, and did not warrant appellate intervention at this stage. 'Since the impugned order takes the shape of an interlocutory order, which is not deciding any of the rights of the parties, coupled with the fact that the order takes the shape of a consenting order, no interference is called for,' the Bench noted. Aakash shareholding row linked to equity raising The dispute stems from equity fundraising plans by AESL, in which TLPL holds a 25 per cent stake. TLPL's RP moved the NCLAT after the NCLT's Chennai Bench passed an interim order on March 27 directing the maintenance of status quo in the company's shareholding structure. A challenge to this order by AESL led to a Karnataka High Court judgment on April 8, which set aside the NCLT's interim directive and remanded the case for fresh hearing. At the NCLT's subsequent hearing on April 30, TLPL's counsel Abhinav Vasisht argued that the company's stake was being diluted despite the previous directive and raised concerns over hypothecation of AESL assets and alterations to the Articles of Association that protected TLPL's interests. Also Read: Due to the complexity of the submissions and the court's approaching summer break, the NCLT passed a consent order maintaining the current shareholding pattern until TLPL's application for interim relief could be fully heard. Challenging this consent order, TLPL's RP approached the NCLAT. However, the appellate tribunal ruled that the directive was non-final and did not infringe upon substantive rights. 'Thus, the instant Company Appeal (AT) (CH) No. 68 / 2025 lacks merits and the same is accordingly dismissed,' the order stated. The development is the latest in a series of legal entanglements involving Byju's. The Supreme Court has admitted the pleas but stayed the NCLT proceedings against them, directing parties to maintain status quo for two weeks pending further hearings.
Hans India
2 days ago
- Business
- Hans India
NCLAT dismisses Byju's RP plea over status quo on Aakash shareholding
The National Company Law Appellate Tribunal (NCLAT) has dismissed a plea filed by the Resolution Professional (RP) of the Think and Learn Private Limited (TLPL), the parent company of edtech firm Byju's, against an earlier order by the National Company Law Tribunal (NCLT). The NCLT had directed that the shareholding in Aakash Educational Services should remain unchanged until further hearings. A two-member bench of the NCLAT, comprising Justice Sharad Kumar Sharma and Jatindranath Swain, observed that the NCLT's direction was an interim, or interlocutory, order and appeared to be a "consensual" one. Therefore, there was no need for the appellate tribunal to intervene at this stage, it said. "Since the impugned order takes the shape of an interlocutory order, which is not deciding any of the rights of the parties, coupled with the fact that the order takes the shape of a consenting order, no interference is called for by this Tribunal in the exercise of its Appellate Jurisdiction at this stage," the NCLAT stated. The dispute arose from concerns over equity fundraising activities by Aakash Educational Services, in which TLPL holds a 25 per cent stake. On March 27, the NCLT had directed all parties to maintain the status quo regarding Aakash's shareholding until the next hearing. The TLPL, through its Resolution Professional, later challenged this direction before the Chennai bench of the NCLAT. Meanwhile, the matter also reached the Karnataka High Court, and on April 8, it set aside the NCLT's earlier order and sent the case back to the insolvency tribunal. During the next NCLT hearing on April 30, the TLPL's counsel, senior advocate Abhinav Vasisht, raised concerns that the TLPL's shareholding in Aakash was being diluted and that important assets were being hypothecated. He further claimed that changes had been made to the Articles of Association of Aakash, which had earlier protected the TLPL's interests. Given the complexity of the case and the upcoming summer break, the NCLT passed a temporary 'consent order' on April 30. The order stated that the TLPL's shareholding in Aakash should not be diluted until the tribunal could fully hear the matter. However, the TLPL again challenged this interim direction, arguing that their concerns were not being fully addressed. The NCLAT, after hearing the appeal, concluded that the NCLT's order was not final and did not warrant intervention. As a result, the appellate tribunal dismissed the TLPL's appeal.
