NCLAT dismisses Byju's Appeal against NCLT’s Interim Order [Read Order]

Think & Learn Private Limited (Byju's) appeal against the NCLT's interim order was denied by the Chennai bench of the National Company Law Appellate Tribunal (NCLAT). According to the Tribunal, no intervention was necessary at the appellate stage because the contested order was interlocutory in character and issued with the parties' assent.

Think & Learn Private Limited (under CIRP) appealed the NCLT, Bengaluru Bench's ruling dated 30.04.2025 under Section 421 of the Companies Act, 2013. In the contested ruling, the NCLT had mandated that TLPL's ownership of Aakash Educational Services Limited (Respondent No. 1) not be reduced until the interim reliefs that TLPL had requested were considered and resolved.

On March 27, 2025, the NCLT issued an interim order instructing the respondents to keep their ownership at the current level. The Karnataka High Court heard a challenge to this order. On April 8, 2025, the High Court overturned the interim order and sent the case back to the NCLT for a further hearing. The NCLT was instructed to prevent the dilution of TLPL's shares until it issued the necessary instructions.

According to the NCLAT, the contested ruling dated April 30, 2025, was a "consensual order," in which the parties agreed that TLPL's ownership of Respondent No. 1 would not be altered until the Tribunal made a decision on the interim relief request.

The bench of Justice Sharad Kumar Sharma (Judicial Member) and Jatindranath Swain (Technical Member) has held that since the Impugned Order takes the shape of an interlocutory order, which is not deciding any of the rights of the parties, coupled with the fact that the order takes the shape of a consenting order, no interference is called for by the Tribunal in the exercise of its Appellate Jurisdiction at this stage. The Tribunal therefore dismissed the appeal as lacking merit.

Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates