Karnataka High Court Sets Aside NCLT's Status Quo Order Against Aakash Institute, Directs Fresh Hearing

The Karnataka High Court set aside the National Company Law Tribunal (NCLT)'s order directing Aakash Institute to maintain the status quo on its shareholding.

The Court held that NCLT passed the order without granting a proper hearing to Aakash Institute and Manipal Systems and remanded the matter for fresh consideration.

The case relates to a shareholder dispute, where Singapore Topco and others opposed changes in Aakash’s Articles of Association, fearing dilution of their shareholding.

While setting aside the earlier order, the High Court directed Aakash not to reduce or dilute Byju’s shareholding until the NCLT reconsiders the case.