The Chennai bench of the National Company Law Appellate Tribunal (NCLAT) on June 3 dismissed a petition filed by certain foreign investors of edtech giant Byju’s. These investors had sought an order against the ongoing proceedings in the Bengaluru bench of the National Company Law Tribunal (NCLT).
According to sources, the judges of NCLAT informed the investors’ counsel that, as an appellate court, they cannot intervene in matters that are “yet to mature” in NCLT. “We cannot issue an order on a matter that is yet to be decided by NCLT,” the bench observed, further adding, “We cannot substitute the actions of NCLT.”
Byju’s counsel pointed out that the investors had not even formally filed an application or affidavit regarding the alleged breach of the interim order by Byju’s. “They haven’t even filed a petition for contempt in NCLT and yet, they have come here to argue as if NCLAT must suo moto take it up for hearing,” he argued, highlighting the investors’ blatant disregard for due process. The court also noted that the investors’ petition was incomplete and lacked essential records. “If you don’t come up with complete records, we can be your worst enemy,” the bench warned.
The court concluded that the investors’ appeal was not sustainable.
The investors had approached NCLAT against Think & Learn Pvt Ltd, owned by Byju’s, claiming the company failed to comply with the National Company Law Tribunal (NCLT) orders in the ongoing proceedings over oppression and mismanagement within the company (MIH EdTech Investments and Ors. v. Think and Learn Pvt Ltd).
A coram of judicial member Justice Sharad Kumar Sharma and technical member Jatindranath Swain dismissed an appeal filed by the four investors – MIH EdTech Investments, a subsidiary of Prosus NV, General Atlantic Singapore, Peak XV Partners Operations LLC, and Sofina, according to media platform Bar & Bench.
The investors filed an appeal challenging an order of April 23 of NCLT Bengaluru.
Their petition before the NCLT alleged oppression and mismanagement by the company. The group of investors sought a declaration that founder and chief executive officer (CEO) Byju Raveendran and the present company management were unfit to run the company and should be ousted from the management, according to Bar & Bench.
First Published: Jun 06 2024 | 5:42 PM IST
