Karnataka HC rejects Qatar Holdings’ request for Byju Raveendran but orders status quo on Aakash stock
The Karnataka High Court has rejected the defense of Qatar Holding, who sought to limit investments by Byju Raveendran and Byju, rather than transferring $235 million worth of assets, including shares of Aakash Educational Services Ltd (Aakash Institute), to bring you relief to Edtech Founder Anbatted Edtech Founder.
The order was served on April 16 by Justice Ashok S. Kinagi and was reviewed Mintbelieves that Qatar Holdings must take further remedies before the arbitral tribunal formed by the Singapore International Arbitration Centre (SIAC) rules.
Nevertheless, the High Court has issued instructions that the status quo regarding the alienation of the disputed shares will remain in place for three months to grant some temporary relief held by Qatar.
The court stated in its judgment: “The petition was denied; however, freedom is reserved to the petitioner to apply before the emergency arbitrator or the arbitral tribunal to apply before the interim relief. Meanwhile, the interim order, commitment and status quo will last for three months.”
The origin of the dispute
The dispute revolves around BYJU’s $1 billion acquisition of the Aakash Institute at the peak of Covid Pandemic in 2021, the company’s largest deal to date. To fund the acquisition, BYJU’s global PTE Ltd signed a stock security agreement with Raveendran’s personal guarantees.
Under the terms of the agreement, BYJU’s obligation to repay $300 million by March 31, 2025. However, in February 2024, Qatar Holdings terminated the agreement, accusing of default and demanding immediate repayment of $235.18 million. It subsequently initiated an arbitration proceeding at SIAC on March 7, 2024. On March 28, an emergency arbitrator prohibited BYJU from disposing assets to the amount of the claim, and the ruling was later enforced by the Singapore High Court.
Although Raveendran filed an affidavit to disclose its assets, Qatar Holdings believes the disclosure is incomplete, especially regarding the disclosure of Aakash shares. It also pointed out that Raveendran’s statements were inconsistent, saying that he initially declared Aakash shares a part of his assets but later claimed that their inclusion was wrong.
The Karnataka High Court has since approached Karnataka, seeking temporary protection of the disputed shares. Justice Kinagi refused to grant the main relief he sought, noting that Raveendran took a contradictory position on ownership of Aakash shares. “The litigants may take different positions at different times, but cannot take contradictory positions in the same situation. The parties cannot recognize the same fact and be felony. This inconsistency reflects the actions of one party.”
Although the petition was rejected, the High Court provided further developments before the SIAC Tribunal, the High Court enforced the status quo for three months and provided temporary protection for Qatar holdings.
BYJU’s vs BCCI
Since June 16, 2024 ₹Under the sponsorship agreement, India (BCCI)’s Cricket Control Board paid 15.8 billion.
Founded in 2011 by Raveendran and Divya Gokulnath, Byju’s was once India’s most famous Edtech startup, achieving its unicorn status and attracting investors around the world.
However, there have been a crisis of aggressive expansion, financial distress, regulatory scrutiny and disputes with creditors, with lenders raising their total claims against it to $1.5 billion.
Byju Raveendran currently lives in Dubai, while his brother Riju lives in London.
