Aakash’s Founder Jagdish Chaudhry Pleads NCLT Over Changes In Governance Norms
Aakash’s Founder Jagdish Chaudhry Pleads NCLT Over Changes In Governance Norms
The tribunal will hear the matter on 30 April
Jagdish Chand Chaudhry, the founder of Aakash Educational Services, has requested the Bengaluru bench of the National Company Law Tribunal (NCLT) against changes in the firm's Articles of Association (AoA).
The tribunal’s members Sunil Kumar Agarwal and Radhakrishna Sreepada issued notices on the legal battle involving minority rights protections under the Companies Act.
A minority shareholder of Aakash, Chaudhary pleaded before the NCLT to "restrain the respondents (Aakash & 22 others)" from making proposed changes in the AoA of the company.
AoA outlines the rules and regulations of a company's operations, management and the relationship between shareholders, directors, and the company.
Chaudhry had sold his stake to Think & Learn, which runs the ed-tech firm Byju's, undergoing insolvency.
Think & Learn owns a 26 percent stake in Aakash while Byju Raveendran has a 17 percent stake. Manipal Education and Medical Group (MEMG), led by Ranjan Pai, owns the majority 40 percent stake. The company acquired it in January 2024 by converting a USD 300 million debt investment into equity.
Recently, Glas Trust Company LLC, the US-based lender of debt-ridden Byju's, approached the Chennai bench of the National Company Law Appellate Tribunal (NCLAT) seeking a stay over amendments in the AoA of Aakash.
The appellate tribunal issued notices to Aakash, the Resolution Professional (RP) of Think & Learn.
On 25 February, private equity firm Blackstone-backed Singapore VII Topco withdrew its petition filed with the NCLT against the amendment in Aakash’s AoA.
The petitioners, including Singapore VII Topco, holding a 6.97 percent stake in Aakash, alleged their rights and interests were subjugated.
An extraordinary general meeting (EGM) of Aakash was scheduled to be held on 29 November to consider and approve alteration in the AoA, which was the minority shareholders objected.
However, the NCLT stayed the resolution on the amendment, which allegedly sought to dilute the rights of minority shareholders, including Singapore VII Topco.
Thus, Aakash approached the High Court of Karnataka, which upheld the NCLT order.
On 29 November, the Supreme Court prevented the amendment of AoA.
The top court directed Akash to approach the NCLAT within seven days. It added that the stay on implementing the EGM resolution over alteration in the AoA would remain effective until the appeal was heard by the appellate tribunal.
The NCLT stayed the alteration of AoA after Singapore VII Topco and others filed a petition under Sections 241, 242 and 244 of the Companies Act, which protects the rights of minority shareholders.
