Byju’s moves fresh plea before HC for stay on insolvency proceedings
Byjus, Byju (Photo: Reuters)
Edtech firm Byju’s moved the Karnataka High Court on Thursday seeking a stay on the insolvency proceedings triggered by the National Company Law Tribunal (NCLT) in Bengaluru.
Byju’s has urged the Court to stay the insolvency resolution process as well as the formation of the Committee of Creditors (CoC) until its appeal pending before the National Company Law Appellate Tribunal (NCLAT) is heard and decided finally, according to the law platform Bar & Bench.
Senior Counsel Abhishek Manu Singhvi appeared on behalf of Byju’s parent company, Think and Learn. He told the Court that the NCLAT bench in Chennai had adjourned the edtech firm’s appeal to another date to decide on “whether one of the judges will have to recuse from the plea,” according to Bar & Bench. He told the Court that if the Committee of Creditors (CoC) is formed in the meanwhile, Byju’s will be left remediless and it will become irreversible.
On July 23, the NCLAT had adjourned the appeal filed by Think and Learn to Monday, July 29.
Singhvi contended that if the NCLAT adjourned the plea again on Monday on the recusal of a member, the company faces the threat of the Committee of Creditors (CoC) taking over it without having had the chance to argue its appeal. He sought a stay on the formation of the Committee of Creditors until the NCLAT hears the appeal and passes an order.
Earlier this month, NCLT admitted Byju’s, officially known as Think and Learn Pvt Ltd, into the Corporate Insolvency Resolution Process (CIRP) based on a petition filed by the Board of Control for Cricket in India (BCCI) due to unpaid dues amounting to Rs 158.90 crore.
Due to the NCLT’s order, the company’s founder, Byju Raveendran, lost immediate control of the company. The tribunal appointed a bankruptcy professional to oversee daily operations during the proceedings. With the NCLT appointing Pankaj Srivastava as the interim resolution professional (IRP), time is running out for Byju’s as the Committee of Creditors (CoC) is getting formed.
NCLT’s order has also created anxiety in Byju’s workforce which has now approximately 13,000 members, down from nearly 15,000 at the close of 2023.
Last year, BCCI claimed that Byju’s had defaulted on a payment of Rs 158 crore. It initiated corporate insolvency proceedings against the beleaguered edtech company at the NCLT.
Singhvi, representing Byju’s in the matter, reportedly said the company is prepared to commit to depositing the entire Rs 158 crore in one instalment within one month.
First Published: Jul 25 2024 | 10:46 PM IST