The Karnataka High Court extended the interim order asking Byju’s shareholders not to bring in effect any resolutions passed by investors at extraordinary general meeting (EGM) held on February 23.

The court’s decision comes in response to an EGM called by a group of shareholders, who voted to remove Byju Raveendran from his position.

During the hearing, Byju, alleged that the investors had committed perjury as there are discrepancies with respect to the date on which the affidavit attached to the statement of objections were filed.

Court direction

The court directed Byju’s to put their allegations on writing, if they want the court to take notice of it and the case was thus adjourned after Byju’s sought time to file a response to the objections filed by investors.

“In today’s Karnataka High Court hearing, the court has granted time to Think and Learn to file a rejoinder to the response filed by some of the investors. The stay against the purported resolutions at the ‘so called’ EGM that the investors attempted to pass on 23 Feb 2024 continues and, as such, none of those resolutions can be given effect to. They are unactionable. The matter will next be heard on 28th March,” said BYJU’S spokesperson.

On February 21, Think and Learn, parent of BYJU’S, had approached the Karnataka High Court for a stay on the decision of the EGM, called by a group of investors. The HC refused to stay the EGM, but asked the investors not to bring into effect the resolution passed till March 13.

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.

Separately, four investors--Prosus, GA, Sofina, and Peak XV, also moved the National Company Law Tribunal (NCLT) Bengaluru challenging the $200-million rights issue and filing a petition against oppression and mismanagement by the company.

The NCLT has asked the edtech major to keep the proceeds from the rights issue in an escrow account while the matter is being heard.

BCCI-NCLT case

In a seperate hearing at NCLT Bengaluru bench has scheduled the next hearing in the insolvency plea filed by BCCI against BYJU’S on March 20.

BYJU’S argued that BCCI has not render any service post the culmination of the contract between the two parties. Thus, the BCCI’s claims of pending dues of ₹158 Cr from BYJU’S cannot be considered as an operational credit. The company argued that invoices for the earlier contract have been paid and the present claim is for the period post expiry of the Agreement.

BCCI had approached the Bengaluru bench of NCLT against Think & Learn Pvt Ltd for defaulting on dues of close to ₹160 crore over the non payment of dues as part of its jersey sponsorship deal.

In December, the NCLT issued a notice to the edtech major in connection with the BCCI’s insolvency petition filed in November.

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