NCLAT Rejects Byju’s Resolution Professional’s Petition in Aakash Shareholding Dispute

The National Company Law Appellate Tribunal (NCLAT) has dismissed a plea filed by the Resolution Professional of Think & Learn, which owns the edtech brand Byju’s. The petition challenged an NCLT order directing the maintenance of the status quo regarding the company’s stake in Aakash Educational Services.

A two-member NCLAT bench ruled that since the NCLT order is consensual and an interlocutory order, it does not decide any of the rights of the parties. Therefore, the appellate tribunal found no reason to interfere at this stage.

The NCLT order was issued in response to the ongoing dispute over the shareholding in Aakash Educational Services, a significant player in the education sector. Byju’s, one of the leading edtech companies in India, had acquired a substantial stake in Aakash, but the acquisition has been mired in legal challenges and controversies.

The resolution professional, who was appointed to manage the affairs of Think & Learn, argued that the NCLT order would prejudice the interests of the stakeholders and the resolution process. However, the NCLAT bench was not convinced by these arguments and upheld the NCLT’s decision.

This decision is a significant development in the ongoing legal battle between Byju’s and other stakeholders in Aakash Educational Services. It reinforces the NCLT’s authority to manage the status quo and ensures that the resolution process can proceed without undue interference.

Byju’s, founded by Byju Raveendran, has been at the forefront of the edtech revolution in India. The company has rapidly expanded its footprint through strategic acquisitions and partnerships. The Aakash acquisition was a key part of this strategy, aimed at enhancing Byju’s offerings in the highly competitive edtech market.

However, the acquisition has faced numerous challenges, including allegations of financial irregularities and governance issues. The NCLAT’s decision to uphold the NCLT order is likely to have a significant impact on the future of the Aakash acquisition and the broader edtech landscape in India.

The legal proceedings surrounding the Aakash shareholding dispute have drawn attention to the complexities and challenges of mergers and acquisitions in the edtech sector. As the case continues to unfold, stakeholders and industry observers will be closely watching for any further developments.

In conclusion, the NCLAT’s dismissal of the resolution professional’s petition underscores the importance of maintaining the status quo in complex legal disputes. It also highlights the need for robust governance and transparency in the edtech sector, as companies continue to navigate the challenges of rapid growth and expansion.