Byju’s Insolvency: Employee Claims and Ongoing Verification

Byju's corporate insolvency resolution process (CIRP) disclosed important claims made by workers. These workers are demanding unpaid debts. Together, these workers—who are also operational creditors, have submitted claims totaling ₹177.5 crore. However, Pankaj Srivastava, is the selected dispute resolution professional (RP). He has only provisionally admitted a small portion of these claims₹32.56 crore.

Breakdown of Employee Claims

• Total Claims Filed: ₹177.5 crore

• Provisional Claims Accepted: ₹32.56 crore

• Claims Rejected: ₹59.87 crore

• Claims Under Verification: ₹85.06 crore

The resolution professional  has stated that claims are being reviewed continuously. Some claims await further documentation whereas Some claims have been partially accepted. All these claims that will be accepted will validate the amounts requested.

What Should Employees Do?

There are few employees whose claims are missing from the current list. The best thing for those employees is to send follow-up emails to a designated ID. This guarantees that their issues are taken care of. These issues are taken care of throughout the verification procedure.

Other Legal Developments

The National Company Law Tribunal (NCLT) has reserved its decisions. Here are a few:-

BCCI: The cricket board has filed a plea to withdraw its insolvency petition.

Glas Trust and Aditya Birla Finance: They have requested to be included in the committee of creditors (CoC).

These decisions could impact the distribution of funds and also the resolution process.

Key Rules for Filing Claims

The Insolvency and Bankruptcy Code (IBC) requires claimants to follow certain deadlines:

• Late claims are accepted only up to seven days before the creditor meeting to vote on the resolution plan or initiate liquidation.

• Claims should be filed within 14 days of the CIRP commencement.

What’s Next for Byju’s Employees?

This entire process requires a whole lot of patience. The CIRP aims to settle all claims fairly. Employees must stay proactive. Submitting reminders and supporting documents as needed should be done proactively by employees. For all stakeholders and Byju’s employees, the outcome of this process will determine the company’s financial future.

Stay tuned for updates on Byju’s resolution process and employee claims.