Karnataka High Court reserves order on Byju's challenge to NCLT stay on rights issue

The Karnataka High Court reserved its decision on a plea challenging the NCLT’s June 12 interim order that restrained Byju’s from proceeding with a second rights issue. Justice SR Krishna Kumar will dictate the order on July 2. The judge focused on the NCLT’s interim order's validity rather than the cross-allegations between Byju’s and its investors. The NCLT's decision followed a petition from four investors accusing Byju’s of oppression and mismanagement. Byju’s challenged the interim order, arguing it lacked reasoning and did not violate any NCLT undertakings. The investors contended Byju's breached earlier undertakings and failed to disclose financial information. They also argued the NCLT’s interim order, when read with earlier orders, provided sufficient reasoning.