NCLT order cryptic, unreasoned: Karnataka HC while setting aside order restraining Byju’s second rights issue

The Karnataka High Court has observed the order by the National Company Law Tribunal (NCLT) restraining a second rights issue by edutech company Byju’s was “cryptic and unreasoned”. The single-judge bench of Justice S R Krishna Kumar set aside the order on Tuesday, with the detailed order made available on Wednesday.

The NCLT order on June 12 restrained Byju’s from going further with the second rights issue — an invitation to existing shareholders to purchase additional shares — that began till the disposal of another plea filed by major investors, who had raised concerns including dilution of their shares.