Byju's Former Resolution Professional And Promoters Challenge NCLT Decisions In NCLAT
Passing an order on Jan. 29, the National Company Law Tribunal directed disciplinary proceedings against Byjus's resolution professional and nixed his direction to exclude Glas Trust and Aditya Birla Finance from the edtech's Committee of Creditors.
(Source: Byju's website)
Former Resolution Professional of insolvency-bound edtech firm Byju's has moved appellate tribunal NCLAT challenging disciplinary action recommended against him by the Bengaluru bench of NCLT. Besides, former promoters of Byju's and brother of Byju Raveendran - Riju Raveendran also moved the National Company Law Appellate Tribunal against the NCLT order restating Glas Trust and Aditya Birla Finance in the Committee of Creditors of edtech firm.
Passing an order on Jan. 29, the National Company Law Tribunal directed disciplinary proceedings against Byjus's resolution professional and nixed his direction to exclude Glas Trust and Aditya Birla Finance from the edtech's Committee of Creditors.
The matter came for hearing before the Chennai bench of NCLAT on Thursday. However, a member of the bench recused himself from the matter.
Justice Sarad Kumar Sharma recused from hearing as he was the counsel of BCCI which moved a petition against Byju's for recovery of dues.
Now matter has been referred to the Chairperson of the appellate tribunal, who will assign this matter to a new bench.
Challenging the NCLT order, Pankaj Srivastava, suspended RP and submitted before the Chennai bench of NCLAT that he was not properly heard by the NCLT, which is against the established norms.
In his petition, he also mentioned the observations by the NCLT and said they were unreasonable and unfair. Riju Raveendran submitted that NCLT should not have reconstituted when the matter for withdrawal of CIRP on account of settlement with BCCI is pending.
He further submitted that the Supreme Court has granted them the liberty to pursue appropriate Remedies following the settlement.
On Jan. 29 NCLT had directed the Insolvency & Bankruptcy Board of India to conduct an enquiry against Pankaj Srivastava, resolution professional of Think & Learn, which owns edtech firm Byju's.
A two-member bench in its order said his conduct 'is not fit and proper as expected'. The conduct on the part of the IRP needs to be dealt with the way of disciplinary proceedings by the IBBI. Hence, the IBBI may conduct the necessary investigation in this matter, it said.
The tribunal also cancelled the reconstitution of the Committee of Creditors of Byju's, carried out by the Interim Resolution Professional on Aug. 31, 2024, in which Srivastava had excluded Glas Trust and Aditya Birla Finance.
The NCLT has restored the previous CoC, constituted on Aug. 21 last year, putting Aditya Birla Finance back as a financial creditor of Think & Learn.
It also set aside the resolution professional's direction, re-classifying Glas Trust and Aditya Birla Finance as operational creditors.
"The Applicant No. 1, Aditya Birla Finance Limited is hereby restored to the status of a Financial Creditor, with all attendant rights, privileges, and obligations, as envisaged under the Code and letter dated Sept. 5, 2024, re-classifying Applicant No. 1 as Operational Creditor is set aside," the NCLT had said.
Besides, the tribunal also set aside the resolution passed by the reconstituted CoC on Sept. 3, 2024, which appointed the Interim Resolution Professional as the Resolution Professional.
