NEW DELHI: The Supreme Court on Friday directed Byju’s subsidiary Aakash Institute not to implement the resolution to amend its Articles of Association (AoA), which was passed at the EGM (extraordinary general meeting). While on November 20, the National Company Law Tribunal (NCLT) blocked the resolution, it was later stayed by the Karnataka High Court.
The resolution is said to have the potential to dilute shareholding rights of certain investors. A Bench led by Chief Justice of India Sanjiv Khanna and Justice PV Sanjay Kumar directed Aakash to approach the NCLAT within seven days.
As per reports, both Aakash and Manipal Health Systems, which is a shareholder, informed the SC that they would not pursue the writ petition in the Karnataka High Court against the NCLT order. Reports suggest the NCLAT has been directed to decide the case uninfluenced by the decision of the high court.
Singapore VII Topco, entity owned by Blackstone, which holds a 6.97% stake in Aakash had filed a mismanagement and oppression petition with the NCLT and investors had argued that whatever changes proposed aimed at diluting their stake in the company. Aakash Institute is the profitable subsidiary of beleaguered edtech firm Byju’s.