Byju's-Investor Dispute: NCLT Rejects Request To Halt EGM
The tribunal also rejected the request to appoint an independent person to oversee the meeting.
The National Company Law Tribunal rejected on Thursday a request by investors to halt Byju's' extraordinary general meeting that is scheduled for the next day.
The Bengaluru bench of the tribunal also rejected the request to appoint an independent person to oversee the meeting. The next hearing is scheduled for April 4.
Senior advocate Sudipto Sarkar, representing the investors, conveyed that they have been asked to attend the EGM to discuss increasing the authorised capital.
However, Sarkar emphasised that the EGM should not proceed at this time. During the current hearing, the investors' sole request is for the tribunal to first examine the matter before proceeding with the EGM. They are not seeking for the EGM to be nullified entirely, but to merely postpone it to a suitable time, he said.
Sarkar also mentioned that according to Byju's claims, the rights issue and all related formalities that opened on Jan. 29 should have been completed within 60 days, which is March 29. However, achieving this within the given timeframe seems unfeasible now, rendering the purpose of the EGM futile.
Lastly, investors alleged that the notice of the meeting was not sent to all stakeholders.
In late February, four investors, including MIH Edtech Investments B.V, Peak XV Partners Investments IV, Peak XV Partners Investments V, Sofina S.A., and General Atlantic Singapore TL Pte. filed a case with the National Company Law Tribunal against Byju's.
The plea filed targets 12 entities and individuals, including Byju's Founder Byju Ravindran, his wife Divya Gokulnath, and his brother Riju Raveendran, as per information available on the NCLT's website.