Blackstone-Backed Singapore Topco Withdraws NCLT Plea Against Aakash Institute's AoA Changes
Blackstone-Backed Singapore Topco Withdraws NCLT Plea Against Aakash Institute's AoA Changes
Blackstone-backed Singapore Topco withdrew its petition before the National Company Law Tribunal (NCLT), challenging Aakash Institute's resolution to amend its Articles of Association (AoA), which could potentially dilute investor shareholding.
Senior Advocate Niranjan Reddy, representing Singapore Topco, informed the NCLT of the decision to withdraw the oppression and mismanagement petition against Aakash Institute, a subsidiary of ed-tech platform Byju’s. However, no specific reason was provided for the withdrawal.
During the proceedings, Senior Advocate Srinivasa Raghavan, appearing for Glas Trust—a lender to Byju’s—urged the NCLT to safeguard its interests. He argued that Aakash was the only significant asset within Byju’s portfolio. However, the tribunal did not issue any such protective order.
Aakash Institute has been entangled in legal disputes over its proposed AoA amendment. Singapore Topco, which holds a 6.8% stake in Aakash through a merger agreement with Byju’s, opposed the move, fearing shareholding dilution. Glas Trust also raised concerns, alleging that the amendment was an attempt by Byju’s former management to weaken its stake in Aakash.
Aakash defended the amendment, stating it was necessary to secure funding. Currently, Manipal Systems holds the largest stake in Aakash.
Initially, the NCLT restrained Aakash from implementing the amendment. However, the Karnataka High Court later stayed the tribunal’s order, allowing Aakash to proceed. Singapore Topco then contested the High Court’s authority in the matter. The Supreme Court intervened, directing Aakash to halt implementation and seek resolution before the National Company Law Appellate Tribunal (NCLAT).
The NCLAT upheld the stay order and directed Manipal Systems and Aakash to approach the NCLT for its vacation. Subsequently, Aakash filed a plea to lift the stay. Before the NCLT could decide, Singapore Topco withdrew its opposition, bringing an end to its legal challenge.
