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New Delhi: The Supreme Court instructed Aakash Institute, Byju’s subsidiary, not to proceed with the resolution to alter its Articles of Association (AoA), which was approved during the EGM (extraordinary general meeting).
Previously, on November 20, the National Company Law Tribunal (NCLT) had obstructed the resolution, but this was subsequently put on hold by the Karnataka High Court.
The resolution reportedly could weaken the shareholding rights of certain investors. The Chief Justice of India, Sanjiv Khanna, and Justice PV Sanjay Kumar, leading the bench, ordered Aakash to file an appeal with the NCLAT within seven days.
According to reports, Aakash and Manipal Health Systems, a shareholder, have informed the Supreme Court that they will not continue with the writ petition in the Karnataka High Court against the NCLT’s decision. It is indicated that the NCLAT has been instructed to resolve the case without being influenced by the high court’s ruling.
Singapore VII Topco, a Blackstone-owned entity holding a 6.97% stake in Aakash, had lodged a petition with the NCLT alleging mismanagement and oppression, with investors claiming that the proposed changes were intended to reduce their company shares. Aakash Institute is the profitable arm of the struggling edtech giant Byju’s.
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