BYJU’S Creditors Seek Removal Of Insolvency Manager

Amid mounting scrutiny over the insolvency resolution professional (RP) of BYJU’S, the consortium of the company’s US-based lenders, Glas Trust, as well as other creditors urged the National Company Law Tribunal (NCLT) to remove Pankaj Srivastava.

Arguing before the Bengaluru bench of the NCLT, Glas Trust’s counsel Uday Holla sought the removal of Srivastava as the RP and the reconstitution of the committee of creditors, according to a report by Bar & Bench.

“The RP has created absolute confusion and chaos. He issues notice to some creditors, classifying them as financial creditor and cancels the decision,” the report Holla as saying. 

The appeal was also supported by the counsel appearing for another disgruntled creditor of BYJU’S, Aditya Birla Finance. He submitted that the RP has accepted just one party as financial creditor for the embattled company. 

The RP is supposed to oversee the company’s finances and work out a plan to pay off its debts.

Meanwhile, the Board of Control for Cricket in India (BCCI) asked the NCLT to stop its insolvency case against BYJU’s on Wednesday (November 12). 

Last month, the Supreme Court (SC) had restarted the insolvency proceedings at BYJU’S by setting aside a prior NCLAT ruling dismissing the same. As part of the reinitiation of the bankruptcy proceedings, the SC ordered the BCCI to deposit the settlement amount of INR 158 Cr with creditors.

The drama at the Tribunal’s hearing comes days after the matter was heard at the Karnataka High Court. According to reports, the HC barred the CoC from meeting and taking decisions on the company’s affairs till the NCLT decides on the applications to remove the RP.

The next hearing at the NCLT is scheduled for November 18.

It is pertinent to note that Glas Trust had also moved the apex court seeking the removal of Srivastava from the case. On September 17, Glas Trust’s counsel Kapil Sibal told a bench led by CJI DY Chandrachud that the consortium’s disqualification from the CoC was unwarranted.

Note: We at Inc42 take our ethics very seriously. More information about it can be found here.