Read Time: 03 minutes

Synopsis

Four investors of Think & Learn Pvt Ltd, the parent company of Byju's, have approached the National Company Law Tribunal (NCLT) with allegations of oppression and mismanagement.

The investors are seeking a declaration from the NCLT to deem Raveendran Byju, the CEO of Byju's, unfit to lead the company. They have further requested the ouster of Raveendran Byju from his position.

The four investors who approached the NCLT include EdTech Investments, General Atlantic Singapore, Peak XV Partners Operations LLC, and Sofina.

These investors have asserted that the recently announced rights issue by the company is void as it leads to a dilution of 99% of the shareholding of non-participating investors.

Notably, the Karnataka High Court has issued a stay on the Extraordinary General Meeting of the company, which was scheduled for 23rd February.

The purpose of this meeting was for shareholders to reconstitute the board and remove the CEO.

Raveendran, the CEO, approached the high court, arguing that due procedures under the Companies Act, 2013 were not followed.

Additionally, there are multiple applications filed before the NCLT seeking to initiate a Corporate Insolvency Resolution Process (CIRP) against the company.

One application comes from the Board of Control for Cricket in India (BCCI), claiming a default on payment of Rs. 158 crores for the sponsorship contract related to providing jerseys to the Indian Cricket Team.

Apart from BCCI, two other lenders who have approached the NCLT are the Business Process Outsourcing (BPO) entity, Teleperformance Business Services, and the digital marketing vendor Surfer Technologies.