The ongoing dispute between Byju’s and a group of investors has taken a new turn, with Byju’s seeking arbitration to resolve the conflict. By invoking the arbitration clause in its agreement with the investors, Byju’s aims to address the dispute through the designated arbitration process. The National Company Law Tribunal (NCLT) has scheduled a hearing for April 23 to consider Byju’s plea, and the investors are expected to respond accordingly.
In response, the investor group, comprising Peak XV Partners, General Atlantic, Prosus, and Safina, has raised fresh allegations against Byju’s. They accuse the edtech major of prematurely declaring the outcome of an extraordinary general meeting (EGM) to increase the authorized share capital before the completion of postal ballots. Additionally, the investors claim that Byju’s violated NCLT orders by allotting shares without prior authorization and restricted their access to relevant documents despite an NCLT order permitting inspection.
Byju’s has refuted these allegations, deeming them baseless, and plans to submit a response in an affidavit. Company sources assert compliance with court orders and contend that no violations have occurred. The NCLT has instructed Byju’s to respond to the main petition filed by the investors.
Recently, the NCLT deferred a ruling on Byju’s management’s plea seeking to reverse a previous order mandating the placement of proceeds from a $200-million rights issue into an escrow account. The tribunal cited a difference of opinion between judges and indicated that a third judge would be appointed to adjudicate the matter at a later date.
The outcome of these legal proceedings will likely have significant implications for Byju’s financial operations and its ongoing dispute with investors.
