Blackstone-backed Singapore Topco withdraws plea against Aakash Institute over AoA changes

Private equity firm Blackstone-backed Singapore Topco on Monday withdrew its petition before the National Company Law Tribunal (NCLT) challenging Aakash Institute's resolution to amend its Articles of Association (AoA) that could potentially dilute the investors' shareholding in the company..Senior Advocate Niranjan Reddy, who appeared for Singapore Topco, informed the NCLT of its decision to withdraw the oppression and mismanagement petition against Aakash Institute, a subsidiary of ed-tech platform Byju's. "We are withdrawing the plea," Reddy said.However, he did not cite any reason for the withdrawal. Senior Advocate Srinivasa Raghavan, who appeared for Glas Trust, a lender to Byju's (Think and Learn) urged the NCLT to protect its rights, arguing that Aakash was the only valuable asset with Byju's. But the NLCT did not pass any such order. .Aakash Institute is facing legal challenges over an attempted amendment to its Articles of Association (AoA). Blackstone-backed Singapore Topco, a shareholder in Aakash, opposed the amendment, fearing it would significantly dilute its 6.8% stake. This stemmed from a merger agreement with Byju's through which Topco acquired its shares.Glas Trust, which is one of Byju's lenders, also raised concerns, arguing that the amendment was a move by former Byju's management to dilute the company's valuable stake in Aakash. Glas Trust emphasised that Aakash is a crucial asset for Byju's.Aakash defended the amendment, stating it was necessary to secure funding for the company. Manipal Systems is currently the largest stake holder in Aakash. .The NCLT had initially restrained Aakash from implementing the amendment. However, the Karnataka High Court subsequently stayed the NCLT order, allowing Aakash to proceed. Singapore Topco challenged the High Court's authority to intervene in the matter.The Supreme Court then directed Aakash to halt the implementation and approach the National Company Law Appellate Tribunal (NCLAT) for resolution. .The NCLAT refused to modify the stay order and directed Manipal Systems and Aakash to file an application for vacation of stay before the NCLT instead..Aakash subsequently filed a petition in the NCLT to vacate the stay. However, Singapore Topco chose to withdraw its objection today before the NCLT could adjudicate on the issue..Senior Advocates C.K.Nandakumar and Srinath Sridevan represented Aakash Institute. .Senior Advocate Dhyan Chinnappa represented Manipal.