Lenders accused Byju’s former management, including Byju Raveendran, of attempting to dilute Think and Learn’s shareholding in Aakash.
Bengaluru: The National Company Law Tribunal (NCLT) in Bengaluru witnessed a heated exchange on Monday between the legal representatives of Byju’s parent company, Think and Learn Private Limited, and its Resolution Professional (RP) regarding Aakash Institute’s Extraordinary General Meeting (EGM) scheduled for November 20.
Lenders accused Byju’s former management, including Byju Raveendran, of attempting to dilute Think and Learn’s shareholding in Aakash.
Senior Advocate Uday Holla, representing Glas Trust, emphasized,
“Without Aakash, Byju’s will not be worth anything.”
Several senior advocates represented different stakeholders, including Aditya Sondhi for the RP, Dhyan Chinnappa for Byju Raveendran, KG Raghavan for Riju Raveendran, CK Nandakumar for the BCCI, and Promod Nair for Aditya Birla Finance.
BRIEF FACTS
Byju’s acquired Aakash Coaching in 2021 during the pandemic, marking its largest acquisition at $1 billion. Aakash continued to generate profits post-pandemic due to its physical outlets.
Before the tribunal, lenders alleged that the former management tried to amend the Articles of Association (AoA) to dilute the shareholding.
Senior Advocate Ramji Srinivasan, representing the RP, asserted that Aakash is a subsidiary of Byju’s and that the RP would attend the EGM as Byju’s representative. He argued that the lenders were making submissions without the case being listed. However, lenders contended that Raveendran continued to exercise control over Aakash Coaching, and the RP had not intervened.
READ ALSO: Investor Group Approaches NCLT Bengaluru Against Byju’s Alleging Mismanagement
Holla urged the RP to disclose his intentions for the EGM to the tribunal. Earlier, Senior Advocate Kapil Sibal, representing a Singapore-based investor in Byju’s, had sought an urgent listing of a plea challenging the AoA amendments.
The NCLT is scheduled to hear the application on November 19. It was revealed that over 10 applications related to Byju’s insolvency case remain pending. A bench comprising Judicial Member K. Biswal and Technical Member Manoj Kumar Dubey advised Glas Trust to seek an extension from the Karnataka High Court to facilitate the disposal of petitions.
The Supreme Court, on October 23, had allowed Glas Trust’s appeal challenging the National Company Law Appellate Tribunal (NCLAT) order halting insolvency proceedings against Think and Learn. The judgment overturned the NCLAT decision that accepted a settlement between Raveendran and the BCCI, which had initially led to Byju’s insolvency admission by the NCLT Bengaluru in July.
Subsequently, the Karnataka High Court, on October 30, restrained the Committee of Creditors (CoC) of Think and Learn from convening or making decisions regarding the company’s affairs until the NCLT resolves pending applications seeking the RP’s removal.
FOLLOW US FOR MORE LEGAL UPDATES ON YOUTUBE
