Byju’s Case: Ex-RP Claim is a Legal Setback or Strategy?

Pankaj Srivastava, the former Resolution Professional (RP) of Byju’s, was removed from his role after the National Company Law Tribunal (NCLT), Bengaluru. It was found that he had wrongly excluded two major creditors—Glas Trust and Aditya Birla Finance—from the Committee of Creditors (CoC). The tribunal ordered disciplinary action against him for this decision. This is the latest hearing from NCLT. This has not gone well with Srivastava. Read further to know about Byju’s reaction.

Byju’s: Issues with NCLT

Now, Srivastava is challenging this ruling before the National Company Law Appellate Tribunal (NCLAT) in Chennai. He claims that he was not given a fair chance to explain his actions because the NCLT did not hear his side properly, especially when his lawyers were not present. He believes the disciplinary action against him is unfair. Former Byju's resolution professional (RP) Pankaj Srivastava told NCLAT, Chennai that he was not provided an opportunity to explain his side before the National Company Law Tribunal (NCLT), Bengaluru.

According to Srivastava, he was not listened to by NCLT especially when he didn't get any opportunity of getting his lawyers for the time being. Besides this, the disciplinary action given to him was unfair. Earlier, the NCLT, Bengaluru, had ordered action against Srivastava for removing Glas Trust and Aditya Birla Finance from the Committee of Creditors (CoC) of Byju's, which the tribunal ruled was incorrect. 

Judicial member of the NCLAT decided to step away from Byju's case.

During the hearing on Thursday, Justice (Retd.) Sharad Kumar Sharma, a judicial member of the National Company Law Appellate Tribunal (NCLAT), decided to step away from the case. The reason for this is that he had previously represented the Board of Control for Cricket in India (BCCI) as a lawyer. Justice Sharma felt that as Byju's has had some financial dealings with BCCI, it would be inappropriate for him to hear this case. As a precaution against any conflict of interest, he recused (removed) himself from the hearing. Now another judge or another bench will have to deal with the case.

Byju’s is now following the legal process to resolve its financial issues. 

The court has decided that two major creditors, Glas Trust and Aditya Birla Finance, must be included in the decision-making process. A new Committee of Creditors (CoC) will be formed, and they will work with a new Resolution Professional (RP) to find solutions. The main options include bringing in new investors, selling some assets, or restructuring the company’s debt. The court will make sure everything is done fairly and according to the law. If no solution is found within three months, the company might have to sell its assets to pay off debts, which could lead to its closure. The next few weeks will be very important for Byju’s future.