BYJU's seeks arbitration in investor dispute at NCLT

Embattled edtech firm Think and Learn, owner of BYJU’s brand, sought for matter involving disgruntled investors to be referred for arbitration.

BYJU’s challenged allegations of investor council before National Company Law Tribunal, as per sources. 

investor council accused BYJU’s of violating tribunal's order by issuing shares to investors of rights issue, without completing process of increasing authorised share capital.

" respondent also tried to distract NCLT by saying that matter needs to be referred to arbitration. petitioners' counsel pointed to various case law and sections of law that provide that such a matter cannot be referred to arbitration in view of violations alleged and prayer sought," a source present during hearing said.

NCLT has given 10 days to BYJU’s for filing its response in matter, with next hearing scheduled for 23 April.

A group of four investors - Prosus NV, General Atlantic, Sofina, and Peak XV Partners, with support from Tiger Global and Owl Ventures - h moved NCLT against BYJU's $200-million rights issue.

On April 3, NCLT placed a plea by investors to halt rights issue before tribunal president after a difference of opinion cropped up between members of its Bengaluru bench.

BYJU’s on March 29 concluded its EGM to increase company's authorised share capital. re were no objections to resolutions during meeting, as per sources.

CEO Byju Raveendran told miffed investors hours before EGM that y could participate in $200 million rights issue, which y h earlier also maintained distance from. None of those from investor clutch participated.

PeakXV, General Atlantic and Prosus sought a stay on March 29 EGM, which was not granted by NCLT.

(With PTI Inputs)