Embattled edtech firm BYJU’S has moved the National Company Law Appellate Tribunal (NCLAT) in Chennai, challenging a National Company Law Tribunal (NCLT) order that admitted a BCCI plea to start a corporate insolvency resolution process for its parent company, Think and Learn Private Limited.
Senior Advocate Promod Nair of MZM Legal, representing Think and Learn before the NCLAT, urged for an expedited hearing, emphasising the need to pay salaries to thousands of employees, Bar and Bench reported.
The NCLAT bench has agreed to list the matter for hearing on July 29, the report added.
On July 16, the NCLT in Bengaluru admitted a plea filed by the Board of Control for Cricket in India (BCCI) to initiate a corporate insolvency resolution process for Think and Learn Private Limited.
One of the first options for the edtech firm was to appeal this decision and appear before the NCLAT within 30 days of the order being issued.
Before approaching the NCLAT, BYJU’S unsuccessfully attempted to challenge the NCLT’s decision in the Karnataka High Court.
The NCLT is the first instance tribunal for company law matters, while the NCLAT is the appellate body for decisions made by the NCLT.
Another option for BYJU’S is to reach a settlement with the BCCI.
BCCI is pursuing a claim for a total outstanding amount of Rs 158.90 crore from BYJU’S, not including deducted taxes and applicable interest. The case against BYJU’S parent company, filed in September last year and officially registered in November, underwent multiple hearings at the NCLT.
“As we have always maintained, we wish to reach an amicable settlement with BCCI and we are confident that, despite this order, a settlement can be reached. In the meantime, our lawyers are reviewing the order and will take necessary steps to protect the Company’s interests,” a BYJU’S spokesperson had said on July 16.
Too many challenges
Cash-strapped BYJU’S is engaged in multiple legal battles with its investors and lenders. The latest involves the Qatar Investment Authority, which has petitioned the Karnataka High Court to force Byju Raveendran to disclose his personal assets and to prevent him from selling, pledging, or transferring them.
Mint was the first to report the development.
QIA, one of the largest external investors in India, has sought to claim Raveendran’s personal assets up to $235.19 million.
Back in October 2022, the Bengaluru-based firm had said that it raised $250 million in funding from its existing investors, including QIA, without disclosing the break-up or the valuation for the round of funding. Prior to that, the edtech company had secured a $150 million investment led by QIA in July 2019.
In 2022, QIA provided a $250 million loan to Raveendran, secured against his shares in Think and Learn Private Limited, which he had invested in at a $22 billion valuation.
The Byju Raveendran-led firm is also fighting an oppression and mismanagement suit filed by a group of its investors—Prosus, General Atlantic, Peak XV, and Sofina—which also seeks to void the $200 million rights issue floated earlier this year.
Meanwhile, investor troubles, work culture issues, and industry decline have led many BYJU’S employees to leave, while current employees have been actively seeking new opportunities since the company began struggling to meet payroll.
