NCLT moves the hearing on Byju’s case until June 6

The National Company Law Tribunal’s (NCLT) Bengaluru bench has postponed the hearing in the continuing dispute between Byju’s, an edtech company, and its four investors till June 6.

Byju’s four investors, which included Peak XV Partners and General Atlantic, filed a complaint alleging mismanagement and persecution against the business. They also claimed that the edtech company had violated an NCLT ruling by utilizing part of the cash received during the rights issue. However, Byju’s has refuted it.

According to sources, during the NCLT hearing on Tuesday, the company’s senior counsel, KG Raghavan, gave the judges the assurance that the company has complied fully with the court’s order, which was dated February 27, and that the senior counsel vehemently denied the allegations made by the counsels of four foreign investors regarding the order’s violation.

Byju Raveendran, the creator, told the court that there has been no breach because he had to take on personal debt in order to pay workers’ wages. The edtech company was instructed by NCLT on February 27 to refrain from issuing shares to investors taking part in the rights offer until its authorized share capital had been increased. Additionally, it instructed the company to hold the issue’s profits in a different account.

After the EGM, Byju’s announced that the board had received more than half the votes in favor of raising the share capital. He stated, “As you know, we closed the rights issue last month, which was a crucial step towards ensuring our company’s sustainability and growth in these difficult economic times.”

According to Raveendran, the board is thinking about offering renounced shares to shareholders in order to guarantee that their ownership is not diluted since some of the company’s shareholders were unable to take part in the rights issue earlier.