Court Grants Extension To Byju’s Till March 28 To Submit Rejoinder Against Investors' Plea

The major investors of Byju’s, including Prosus, General Atlantic, Sofina, and Peak XV, filed a petition with the National Company Law Tribunal (NCLT) in Bengaluru

The tribunal instructed Byju’s to segregate the proceeds from the rights issue, approximately $250-$300 million, into a separate account until the case with the investors is resolved

Source : Getty

The Karnataka High Court allowed Think and Learn Pvt Ltd, the parent company of edtech major Byju’s, additional time to submit a rejoinder to the response filed by certain investors. Byju's affirmed that the stay against the resolutions passed during the Extraordinary General Meeting (EGM) on February 23 remains in place, preventing the implementation of any of those resolutions. The matter will next be heard on March 28, the company said.

The major investors of Byju’s, including Prosus, General Atlantic, Sofina, and Peak XV, filed a petition with the National Company Law Tribunal (NCLT) in Bengaluru. The tribunal instructed Byju’s to segregate the proceeds from the rights issue, approximately $250-$300 million, into a separate account until the case with the investors is resolved.

On February 21, Byju's submitted a petition under section 9 of the Arbitration and Conciliation Act, seeking the court's intervention to prevent its shareholders from convening the EGM on February 23. Although the High Court declined to halt the EGM, it directed the investors to refrain from implementing any resolutions passed in the matter until March 13.

It is worth noting that on February 23, several prominent investors such as Prosus, General Atlantic, and Peak XV voted to remove Chief Executive Officer Byju Raveendran from his position at the edtech company Byju’s. However, this demand could not be implemented due to the Karnataka High Court's order.

In another matter, the tribunal is expected to conclude the hearing on the Board of Control for Cricket in India’s (BCCI) petition against Byju's by March 20. The core of the dispute revolves around BCCI's initiation of insolvency proceedings against Byju's due to outstanding dues totalling Rs 158 crore.

Throughout the proceedings, Byju's consistently expressed a preference for resolving the matter amicably through negotiations. Contrary to this, BCCI did not provide any indication of agreement or readiness to pursue a mutually agreeable settlement, according to an IANS report citing sources.