NCLAT Judicial Member Recuses Himself From BYJU’S-AWS Case: Report

Justice Sharad Kumar Sharma, the judicial member of the Chennai bench of the National Company Law Appellate Tribunal (NCLAT), has recused himself from the BYJU’S-Amazon Web Services (AWS) case.

“Let the matter be placed before the chairperson for nomination of an appropriate bench,” Justice Sharma was quoted as saying in a Mint report.

The case stems from a dispute that started in April 2024 after BYJU’S allegedly defaulted on payments to AWS, which provides cloud infrastructure for the edtech firm. The issue remains unresolved, although the BYJU’S Learning app was removed from the Google Play Store.

This is the second time Justice Sharma has recused himself from a BYJU’S related case. 

He had earlier recused from hearing an appeal filed by Riju Raveendran challenging an National Company Law Tribunal (NCLT) order that reinstated lenders Glas Trust and Aditya Birla Finance into BYJU’S committee of creditors (CoC).

Justice Sharma had then cited a conflict of interest, having previously served as legal counsel for the Board of Control for Cricket in India (BCCI), which is a party to the ongoing insolvency proceedings against BYJU’S.

Judicial recusals play a vital role in maintaining impartiality in legal proceedings, especially when a judge has any prior association with the parties involved.

Meanwhile, Glas Trust and Aditya Birla Finance continue to seek inclusion in BYJU’S CoC. The NCLT had earlier allowed their inclusion and initiated disciplinary proceedings against BYJU’S interim resolution professional over alleged misconduct during the insolvency process.

This comes at a time when BYJU’S is grappling with crises on multiple fronts. Over the past three years, the edtech startup has been embroiled in controversies ranging from mass layoffs and mounting losses to delayed financial filings, legal disputes and regulatory scrutiny.

The founders are at loggerheads with investors and creditors, after BYJU’S stopped payments on its $1.2 Bn term loan B (TLB), prompting lenders to initiate legal action across multiple jurisdictions.

Once valued at $22 Bn, the company is now undergoing insolvency proceedings. These began after the Board of Control for Cricket in India (BCCI) moved the National Company Law Tribunal (NCLT) to recover INR 158 Cr in unpaid dues from a sponsorship deal.

The case soon escalated as other creditors (Glas Trust, Aditya Birla) joined in, seeking liquidation to reclaim dues. The tribunal appointed Pankaj Srivastava as the interim resolution professional (IRP) to oversee the process.

However, in January 2025, the NCLT initiated disciplinary action against Srivastava and overturned his decision to exclude GLAS Trust, which represents BYJU’S TLB creditors, and Aditya Birla Finance from the committee of creditors (CoC).

Shailendra Ajmera was then appointed as the new IRP. Srivastava, in his defence, claimed that he was coerced by law firm Khaitan & Co. into appointing EY as the process advisor to investigate the company.