BYJU’S Insolvency: NCLT Adjourns IRP Approval Decision Till March 19

In the latest twist in the BYJU’S insolvency saga, the Bengaluru bench of the National Company Law Tribunal (NCLT) on Monday (February 24) reportedly adjourned its decision on approving the appointment of Shailendra Ajmera as the new insolvency resolution professional (IRP) of the troubled edtech startup.

As per Livemint, the matter, crucial in the edtech firm’s bankruptcy process, will now be taken up on March 19. 

The National Company Law Tribunal (NCLT) was initially scheduled to give its order on Monday on the appointment of Ajmera as the IRP but deferred the decision after lawyers, representing former directors Byju Raveendran and Riju Raveendran raised objections, stating that they must be heard before any ruling is issued.

This comes a month after the NCLT, in January, found the outgoing IRP Pankaj Srivastava’s conduct as “unfit” and “improper” for an officer of the tribunal. The NCLT also directed the Insolvency and Bankruptcy Board of India (IBBI) to initiate disciplinary proceedings against the erstwhile IRP Srivastava.

Ajmera, a partner at Ernst & Young (EY), previously also served as the IRP for Go First. His stint then ended in a controversy after the troubled airline was ordered into liquidation after failing to secure a revival plan.

The latest development comes a week after the troubled edtech platform’s committee of creditors (CoC) reportedly passed a resolution to replace Srivastava with Ajmera. Srivastava was accused by BYJU’S creditors Glas Trust and Aditya Birla Finance of fraud by not including them in the then CoC.

Retaliating to this, Srivastava moved the National Company Law Appellate Tribunal (NCLAT) challenging the NCLT’s order. He alleged that he wasn’t given a fair opportunity to be heard.

That said, BYJU’S is not only plagued by financial woes in India but is also facing legal disputes in the US. Last month, a US Court held BYJU’S’ top executive Vinay Ravindra and business ally Rajendran Vellapalath in contempt for violating a US court order. The duo refused to answer questions about their roles in seizing assets from BYJU’S US-based subsidiaries — Epic! and Tangible Play.

Last year, Nebraska-based businessman William R Hailer alleged in court that Byju Raveendran tried to regain control of its US subsidiary Epic! using loan money that he allegedly hid from investors.

Editor’s Note: The previous version of the story, attributing Livemint, said that the NCLT approved the appointment of Ajmera. The copy has been edited to say that the tribunal deferred its decision after Livemint made changes to its report.