Byju's vs investors: Karnataka HC extends interim protection against EGM till June 24

Byju Raveendran gets further relief

The Karnataka High Court on May 28 extended its interim order asking Byju’s shareholders not to bring in effect any resolutions expected to be passed during the February 23 extraordinary general meeting (EGM).

As a consequence of this extension, the February 23 resolution by a host of blue chip investors like Prosus, General Atlantic and Peak XV voted to fire Chief Executive Officer (CEO) Byju Raveendran from edtech company Byju’s will continue to remain on hold till the next date of hearing ie. June 24. 

This is the third such extension that has been granted in the case.

On February 21, Byju's filed a petition under section 9 of Arbitration and Conciliation act asking the court to restrain its shareholders from holding the EGM on February 23. While the HC refused to stay the EGM, it asked the investors not to give effect to any resolution passed in the case till March 13.

Among investors who have called for the EGM include General Atlantic, Chan Zuckerberg Initiative, MIH EdTech Investments, Own Ventures, Peak XV Partners (formerly Sequoia Capital India & SEA), SCI Investments, SCHF PV Mauritius, Sands Capital Global Innovation Fund, Sofina, and T. Rowe Price Associates.

Amidst the case being pending in the Karnataka High Court, some of the investors approached the National Company Law Tribunal (NCLT) against Byju's rights issue. While the NCLT has not passed any order on the rights issue, it asked the firm to keep the proceeds in an escrow account. It also asked Byju's to consider extending the last date so that the rights of the investors were not affected.