Byju's suspended RP, former promoters move appellate tribunal NCLAT

Furthermore, the tribunal set aside the resolution passed by the reconstituted CoC on September 3, 2024, which had appointed the Interim Resolution Professional as the Resolution Professional.

The former Resolution Professional (RP) of the insolvency-bound edtech firm Byju’s has moved the National Company Law Appellate Tribunal (NCLAT), challenging disciplinary action recommended against him by the Bengaluru bench of the National Company Law Tribunal (NCLT).

Additionally, former promoters of Byju’s, including Riju Raveendran, brother of Byju Raveendran, have also approached NCLAT against the NCLT order. The NCLT had restated Glas Trust and Aditya Birla Finance in the Committee of Creditors (CoC) of the edtech firm.

On January 29, the NCLT passed an order directing disciplinary proceedings against Byju’s resolution professional and overturned his decision to exclude Glas Trust and Aditya Birla Finance from the CoC. The matter was subsequently heard by the Chennai bench of NCLAT on Thursday. However, one of the members of the bench, Justice Sarad Kumar Sharma, recused himself from hearing the case due to his previous association with the Board of Control for Cricket in India (BCCI), which had filed a petition against Byju’s for recovery of dues.

The matter has now been referred to the Chairperson of NCLAT, who will assign the case to a new bench.

Challenging the NCLT order, Pankaj Srivastava, the suspended RP, submitted before NCLAT that he was not properly heard by the NCLT, which goes against established norms. He also claimed that the observations made by the NCLT were unreasonable and unfair.

Riju Raveendran argued that the NCLT should not have reconstituted the CoC, especially when the matter for the withdrawal of the Corporate Insolvency Resolution Process (CIRP) due to a settlement with BCCI was still pending. He further pointed out that the Supreme Court had granted them the liberty to pursue appropriate remedies following the settlement.

On January 29, NCLT had directed the Insolvency & Bankruptcy Board of India (IBBI) to conduct an inquiry against Pankaj Srivastava, the resolution professional of Think & Learn, the parent company of Byju’s. The two-member bench of NCLT had stated that Srivastava's conduct "is not fit and proper as expected" and that his actions should be dealt with through disciplinary proceedings by the IBBI. The tribunal also ordered the IBBI to investigate the matter.

The tribunal also canceled the reconstitution of the Committee of Creditors (CoC) of Byju’s, which had been carried out by the Interim Resolution Professional on August 31, 2024. In this reconstitution, Srivastava had excluded Glas Trust and Aditya Birla Finance. The NCLT has since restored the original CoC, constituted on August 21, 2024, reinstating Aditya Birla Finance as a financial creditor of Think & Learn.

Additionally, the NCLT set aside the resolution professional’s direction to reclassify Glas Trust and Aditya Birla Finance as operational creditors. The tribunal also restored Aditya Birla Finance Limited to its status as a financial creditor, with all attendant rights, privileges, and obligations, as per the Code.

Furthermore, the tribunal set aside the resolution passed by the reconstituted CoC on September 3, 2024, which had appointed the Interim Resolution Professional as the Resolution Professional.