Blackstone withdraws petition against Aakash Institute on changes in shareholder rights

Private equity firm Blackstone on Monday withdrew its petition against Aakash Institute before the National Company Law Tribunal (NCLT).

The development will allow the coaching centre operator to amend its articles of association (AoA) to remove the reserved rights of minority investors by enforcing the resolutions passed at an extraordinary general meeting (EGM) in November last year.

On November 19, some of Aakash’s minority shareholders, including Blackstone, had filed a petition with the NCLT, stating that the company was attempting to strip them of their rights while granting special rights to Manipal Education & Medical Group, which holds around 40% stake.


“I'm under instructions that we will be withdrawing the writ petition and all the interlocutory petitions. We have also filed a memo seeking your lordship's leave to withdraw the company petition,” senior advocate Niranjan Reddy, representing Blackstone, told the tribunal.

“We are treating it as withdrawn, and all the related IAs (interlocutory applications) will be disposed of,” the bench said, accepting Blackstone’s request to withdraw its petition.

The development comes at a time when the case had reached its final hearings, with all parties having concluded their arguments. The coaching operator had also requested the NCLT to reserve the order as both sides had made their submissions. However, the bench had refused to do so.

An email sent to Blackstone did not elicit any response as of press time Monday.

Glas Trust, which represents Byju’s US lenders, requested the bench to stay the withdrawal application to protect the rights of the committee of creditors (CoC) of Think & Learn, which is also a minority shareholder in Aakash.

“Because they (Blackstone) are withdrawing their petition, let it be ordered that no effect be given to the EGM, as this affects the rights of the corporate debtor (Think & Learn), whose rights have been taken away by the same EGM... I am pressing for an interim order now in light of them filing the memo for withdrawal in the first petition,” senior advocate Srinivasa Raghavan, representing Glas Trust, argued.

The bench, however, refused to stay the application.

On November 20, the NCLT had refrained Aakash from amending its AoA after minority investors had alleged that its management had convened an EGM to remove their rights. Aakash Institute, citing the need for funds, had asked the NCLT to lift a stay on the order which barred the company from amending its AoA.

Glas Trust’s Raghavan had earlier argued that the resolution passed was invalid because Byju’s promoter attended the board meeting on behalf of Think & Learn, whereas it should have been the resolution professional (RP) representing the company as it was under the corporate insolvency resolution process.