Qatar Holding plea: Karnataka High Court restrains Byju Raveendran from alienating assets

The Karnataka High Court on Monday granted an interim injunction restraining Byju Raveendran and his investment entities from parting with or encumbering their assets after Qatar Holding LLC moved the Court to enforce a $235 million arbitral award [Qatar Holdings Vs Byju Raveendran]..Justice R Natraj passed the order on a plea by Qatar Holding under the Arbitration and Conciliation Act, 1996 seeking enforcement of a partial final award rendered by a Singapore International Arbitration Centre (SIAC) tribunal. The Court directed that Raveendran and other respondents not to alienate their assets until further orders."The counsel for the respondent seeks time to file response. It is appropriate that the respondent are put on terms. The respondents are restrained by an order of interim injunction from alienating, encumbering immovable assets or in any manner parting with immovable properties till the next date of the hearing," the Court said..In September 2022, Qatar Holding advanced $150 million to Byju’s Investments under a cash-settled option transaction. The funds were utilised to acquire shares in Aakash Educational Services Limited (Aakash Institute), Byju’s largest acquisition worth $1 billion.The transaction was secured through a share pledge agreement and a personal guarantee from Byju Raveendran. Under the agreement, Byju’s Investments Pte Limited (BIPL) was required to repay $300 million by March 31, 2025. Qatar Holding, however, terminated the arrangement in February 2024 citing defaults and demanded early repayment of $235 million.Arbitration was commenced under SIAC rules. On March 28, 2024, an emergency arbitrator restrained BIPL from disposing of assets. That interim award was later enforced by the Singapore High Court..In April 2025, the Karnataka High Court had dismissed Qatar Holding’s petitions under Section 9 of the Act seeking interim protection. Justice Ashok S Kinagi held that once a tribunal is constituted, interim measures must be sought under Section 17 before the arbitral tribunal and not before domestic courts. Interim arrangements, however, were extended for three months to protect Qatar Holding’s interests..With the SIAC tribunal having now rendered a partial final award, Qatar Holding approached the High Court seeking enforcement. Among its prayers were:An injunction restraining Byju Raveendran, Byju’s Investments and affiliates from alienating assets;Attachment and sale of movable and immovable properties to satisfy the award;Appointment of a receiver to take possession of assets, receivables and revenues;Disclosure on oath of all assets and their location.Justice Natraj granted an interim injunction against alienation of assets. The petition will be heard again on enforcement of award.