Nclt Posts Byjus Aakash Hearing For July 16 As Parties Seek Time For Settlement

Aakash Educational Services and Think & Learn’s resolution professional on Tuesday sought deferment of Aakash-related matters before the National Company Law Tribunal (NCLT), saying discussions to resolve the long-running shareholding dispute were at an advanced stage and the contours of a possible settlement were being worked out. “The parties are at an advanced stage of discussions,” Shyam Sundar H.V, the counsel for Aakash, told the tribunal. The Bengaluru bench of the NCLT posted the matter for July 16 saying said that it expected “some kind of solution” from the deliberations, and added that if the parties arrive at a settlement earlier, they could seek advancement of the hearing.The development comes a day after ET reported that settlement talks between Manipal Education and Medical Group and the GLAS Trust, which represents Byju’s’ US lenders, to resolve the Aakash dispute were at an advanced stage. The applications before the NCLT include Aakash-related matters in Think & Learn’s insolvency proceedings, and connected mismanagement proceedings involving Think & Learn, Aakash, and Manipal.The dispute is centred on how the value of Aakash, the crown jewel of the Byju’s group, is divided among Manipal, Think & Learn’s creditors, and entities linked to founder Byju Raveendran and his family.The proposed settlement is expected to address three sets of Aakash shares that have been at the centre of the dispute. Manipal, led by Ranjan Pai, is the largest shareholder in Aakash with about 58% stake. Byju’s parent Think & Learn held 25.75% stake before Aakash initiated a Rs 240 crore rights issue that could have reduced its holding to about 5%, prompting objections from GLAS and the resolution professional. A separate block of 17,891,289 Aakash shares linked to Beeaar Investco, a Singapore entity connected to Raveendran, is relevant because of Qatar Investment Authority’s claims.At the previous hearing on June 3, the counsel for Aakash had informed the NCLT that the parties had entered into a standstill agreement while things were still being finalised. The tribunal had adjourned the matter to June 23.The rights issue became a flashpoint because GLAS and the resolution professional argued that any dilution of Think & Learn’s Aakash stake would hurt creditor recoveries. Aakash and Manipal maintained that the coaching company needed capital, and the rights issue could not be stalled because one shareholder was undergoing insolvency.In October last year, the National Company Law Appellate Tribunal refused to restrain Aakash’s extraordinary general meeting on the rights issue. On November 3, the Supreme Court also dismissed challenges filed by GLAS and Think & Learn’s resolution professional, allowing the issue to proceed.However, the issue remained contested. Aakash completed the first Rs 100 crore tranche, allotting shares to Manipal and Beeaar Investco, but kept Think & Learn’s Rs 25 crore share allotment on hold, citing concerns around the source of funds and possible FEMA and external commercial borrowing issues. In February, the Supreme Court recorded Aakash’s undertaking that Think & Learn’s 25.75% shareholding as on January 3, 2025, would remain secured until NCLAT decides the pending application.