Pankaj Kumar Singhal Vs Shailendra Ajmera (Karnataka High Court)
Summary: The petitioner, who is the Resolution Professional of Byju’s K3 Education Private Limited (Byju’s K3), approached the High Court seeking, inter alia, setting aside of the order dated 13.08.2026 passed by the National Company Law Tribunal, Bengaluru Bench in I.A. No. 768/2026 in C.P. (IB) No. 29/2025, and quashing of the public announcement dated 02.08.2026 concerning sale of certain assets at IndoSpace Logistics Complex, Bommasandra, Bengaluru.
The petitioner apprehended that Respondent No.1, being the Resolution Professional of Think and Learn Private Limited, a subsidiary or related company of Byju’s K3, was proposing to sell properties allegedly belonging to Byju’s K3, which could adversely affect the insolvency resolution process being conducted by the petitioner.
The High Court noted that the matter was already seized of by the National Company Law Tribunal and that the assets of both companies were in the custody of the Tribunal. The Court therefore held that the petitioner should pursue the matter before the NCLT and that parallel proceedings could not be initiated before the High Court, particularly when the dispute was between two Resolution Professionals.
The writ petition was accordingly disposed of by reserving liberty to the petitioner to move the pending proceedings before the NCLT on 20.08.2026 and directing the NCLT to take up the matter and pass appropriate orders.
The High Court further permitted the petitioner to produce documents that subsequently came into his possession and to file such other applications as may be considered necessary before the NCLT, including a copy of the writ petition. The NCLT was directed to consider the matter as expeditiously as possible and, in any event, within 15 days from the following day. The Court also observed that, if necessary, the NCLT could exercise its discretion to protect the assets of the companies in the manner it considered appropriate.
The decision underscores the principle that disputes concerning assets forming part of an ongoing Corporate Insolvency Resolution Process (CIRP), particularly disputes between Resolution Professionals, should ordinarily be addressed before the Adjudicating Authority already seized of the insolvency proceedings rather than through parallel writ proceedings.
FULL TEXT OF THE JUDGMENT/ORDER OF KARNATAKA HIGH COURT
1. The petitioner is before this Court seeking for the following reliefs:
A. Issue a writ, order or direction in the nature of certiorari setting aside the order dated 13.08.2026 (Annexure-A) passed by the Hon’ble National Company Law Tribunal, Bengaluru Bench in 1.A No. 768/2026 (Annexure-S) filed in C.P (IB) 29 of 2025, in so far as it declines to halt the sale of the assets lying at the at IndoSpace Logistics Complex, Bommasandra, 2nd Floor, Plot Nos. 183 to 187 and 254 to 258, Bommasandra Jigani Link Road, Bengaluru, Karnataka – 562106;
B. Issue a writ, order or direction quashing the public announcement dated 02.08.2026 (Annexure-V) for the sale of the allegedly identified assets of Think & Learn Private Limited issued under Regulation 29 of the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016 as being illegal, arbitrary and violative of principles of natural justice;
C. Set aside/cancel the sale of the assets (if any) to an alleged successful bidder pursuant to the public announcement dated 02.08.2026 (Annexure-V) and restrain Respondent No.1 from concluding, confirming, or giving effect to any sale of the said assets, and from executing any sale certificate or other document of transfer, and from effecting delivery of possession of any part of the said assets in favour of Respondent No.2 or any other bidder;
D. Issue a writ, order or direction in the nature of mandamus directing a joint physical verification of the said warehouse by the Petitioner or his nominees and Respondent No.1 or his nominees, with liberty to photograph and video-record, including but not limited to: open cartons, to record device serial numbers and carton identifiers and to inspect the server room, and to file a joint inventory before the Hon’ble Tribunal;
E. Direct the Hon’ble Tribunal to take up and dispose of I.A. (IBC) No. 768 of 2026 (Annexure-S) in a time-bound manner;
F. Award costs in favour of the Petitioner
And pass any such other further orders that this Hon’ble Court may deem fit in the interests of justice and equity
2. Petitioner is a Resolution Professional of Byju’s K3 Education Private Limited (Byju’s K3). The apprehension on the part of the petitioner is that respondent No.1 who is a Resolution Profession of Think and Learn Pvt. Ltd., who is a subsidiary Company or a related Companies of Byju’s K3 is proposing to sell the properties of Byju’s K3, which would have an adverse impact on the petitioner.
3. The matter being seized off by the NCLT and all the assets of both the companies being custodial legis with the NCLT. This Court is of the considered opinion that any application is required to be moved before the NCLT and no parallel proceedings can be initiated in relation thereto before this Court, more so, when the disputes are between two resolution professionals, in that view of the matter, reserving liberty to the petitioner to move the pending proceedings before the NCLT on 20.08.2026 and directing the NCLT to take up the said matter and pass such orders as may be necessary in the matter, the petition stands disposed.
4. The petitioner is also permitted to produce such other documents that have come into the possession of the petitioner subsequently as well as file such other applications that the petitioner intends to file seeking for appropriate relief before the NCLT including the copy of the writ petition. NCLT shall consider the same as expeditiously as possible at any rate within 15 days from tomorrow, if necessary, the NCLT could also exercise its discretion to protect the assets of the companies in the manner that it deems fit.
