NCLAT Chennai Dismisses Byju’s Appeal Against NCLT’s Interim Order in Aakash Shareholding Dispute
- REEDLAW
- 3 days ago
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The National Company Law Appellate Tribunal (NCLAT), Chennai, dismissed Byju’s appeal challenging the interim order passed by the NCLT in the Aakash shareholding dispute.
On 6 June 2025, the National Company Law Appellate Tribunal (NCLAT), Chennai Bench, comprising Justice Sharad Kumar Sharma (Judicial Member) and Mr. Jatindranath Swain (Technical Member), dismissed a company appeal and the connected interlocutory application. The Tribunal held that an interlocutory and consent-based order, which neither adjudicates the substantive rights of the parties nor constitutes a final determination, is not appealable under Section 421 of the Companies Act, 2013. Consequently, no interference was warranted at the appellate stage.
The National Company Law Appellate Tribunal (NCLAT), while deciding Company Appeal (AT) (CH) No. 68 of 2025, dismissed the appeal filed under Section 421 of the Companies Act, 2013, challenging the order dated 30.04.2025 passed by the National Company Law Tribunal (NCLT), Bengaluru Bench, in C.A. No. 68/2025 in CP/46/BB/2025. The Appellant had sought to challenge the NCLT’s interim directions pertaining to the preservation of shareholding structure, particularly the shareholding of the Petitioner Company, TLPL, in Respondent No. 1 Company.
The NCLT, in its impugned order dated 30.04.2025, recorded that although the Senior Counsel for TLPL was pressing for further interim reliefs, the matter relating to TLPL’s shareholding had not yet been fully heard. In the interim, and by way of a consent order, the Tribunal directed that the shareholding of TLPL in Respondent No. 1 Company would not be diluted until the interim reliefs were decided on the next date of hearing, fixed for 06.06.2025.
Earlier, in the same Company Petition, NCLT had passed an interim order dated 27.03.2025 directing the Respondents to maintain the status quo in shareholding. That interim order was set aside by the Hon’ble High Court of Karnataka in Writ Petition Nos. 10842/2025 and 10859/2025 by its order dated 08.04.2025. The High Court remitted the matter back to the NCLT for fresh consideration on 30.04.2025, after securing an undertaking from the Respondents that the shares of TLPL would not be diluted until the Tribunal passed an appropriate order after hearing all parties.
The Appellate Tribunal held that the order dated 30.04.2025 was passed with the consent of the parties and was purely interlocutory in nature. It did not decide any rights of the parties on merits but merely maintained the existing position until further hearing. The NCLAT found that since the order was both consensual and interim in nature, and the substantive issues were yet to be heard and finally adjudicated by the NCLT, there was no ground for interference in appellate jurisdiction at this stage.
Consequently, the appeal was found to be devoid of merit and was dismissed. The connected Interlocutory Application No. 701 of 2025 was also closed.
Mr. S.R. Rajagopal, Senior Advocate for Mr. T.K. Bhaskar, Ms. Pooja Mahajan, Ms. Arveena Sharma, Ms. Ichchha Kalash, Ms. Samridhi Shrimali, Ms. Lakshana Viravalli and Ms. S. Madhusmitha, Advocates, represented the Appellant.
Mr. E. Om Prakash, Senior Advocate for Mr. Chandrachud, Mr. Vishnu Mohan, Mr. D. Venkata Krishna and Ms. Rithika, Advocates, appeared for the Respondent No. 1.
Mr. Arun Kathpalia, Senior Advocate for Mr. A.R. Ramanathan, Mr. Anmol Tayal and Mr. S. Sriraman, Advocates, appeared for the Respondent No. 11.
Mr. Dhyan Chinnappa, Senior Advocate for Mr. A.R. Ramanathan, Mr. Anmol Tayal and Mr. S. Sriraman, Advocates, appeared for Respondent No. 16 to Respondent No. 20.
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