In a dramatic legal showdown, the National Company Law Tribunal (NCLT) has stepped in to freeze Aakash Education Services' plans to change its ownership structure. The dispute centers on BYJU'S, a struggling education technology company, fighting to protect its investment in Aakash.
At the heart of the conflict is a proposed amendment to Aakash's internal rules that BYJU'S claims could slash its ownership rights and harm the existing merger agreement. Singapore Topco, backed by Blackstone and holding a 6.8% stake, has joined BYJU'S in opposing these changes.
Aakash argues the amendments are crucial for survival, saying they'll help the company raise much-needed funds. Manipal Systems, the largest shareholder, supports the proposed changes, creating complex battle lines in the dispute.
As per the report of Business World the legal drama has bounced between multiple courts. The Karnataka High Court initially allowed Aakash to proceed despite the NCLT restraining order, but the Supreme Court quickly intervened after Singapore Topco challenged this decision, putting the brakes on any immediate changes. Aakash tried to seek further recourse through the National Company Law Appellate Tribunal (NCLAT) but was asked to approach the NCLT instead.
BYJU'S, which is already facing serious financial challenges, sees Aakash as a critical asset. The company's resolution professional has raised alarm bells, claiming the proposed changes could seriously damage its ownership rights.
The tribunal has now set the next hearing for April 30, effectively freezing Aakash's ownership structure until then. This means no changes can be made to the company's shareholding, leaving both sides waiting for the next round of legal battles.
