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Bengaluru: The Karnataka High Court dismissed Qatar Holding LLC's petitions seeking an order to restrain Byju’s founder Byju Raveendran and Byju's Investments from disposing of assets worth $235 million including shares in Aakash Education Services Limited (Aakash Institute).
Byju’s Investments is an investment vehicle of Byju Raveendran and a wholly-owned subsidiary of Byju’s Global, an entity registered under the laws of Singapore, in which Raveendran is the sole shareholder. Byju’s Investments owns shares in Think and Learn Private Limited, the parent company of Byju’s.
“The petitions are rejected; however, the liberty is reserved to the petitioner (Qatar Holdings) to make necessary application either before the emergency arbitrator, seeking clarification or before the arbitral tribunal, seeking interim relief,” said the Court’s order dated April 16.
“In the meantime, the interim orders, undertaking and status-quo, shall continue for a period of three months,” the Court ordered, bringing some relief to Qatar Holdings for a limited period, safeguarding the firm’s interests.
Justice Ashok S Kinagi held that Qatar Holding must approach the duly constituted Arbitral Tribunal as per the Singapore International Arbitration Centre (SIAC) Rules, and not Indian courts.
The Court also remarked on Raveendran’s contradictory stands with regards to the ownership of Aakash shares in affidavits filed before the arbitral forum, for the same case.
Qatar Holdings in September 2022 had provided $150 million to Raveendran to part-finance the purchase of 1.78 crore equity shares of Aakash Institute, under a cash-settled option transaction. Byju’s had acquired Aakash Institute in 2021.
Byju’s Investments was to repay $300 million to Qatar Holdings by March 31, 2025, the end of the term under the transaction. But Qatar Holding had terminated the transaction by February 2024 claiming defaults, asking for an early payment of $235 million. It then initiated arbitration proceedings at SIAC in March 2024. An appointed emergency arbitrator barred Raveendran from disposing of the assets up to $235 million. Pursuant to the enforcement of the emergency arbitration award by the Singapore High Court, Byju was required to disclose its assets to Qatar Holdings, which the latter alleged there were deficiencies and inconsistencies in.
Qatar Holdings had approached the Karnataka High Court seeking interim protection of the assets as it was contended that the arbitral tribunal had not yet been constituted.