The NCLT Bengaluru bench Today(on April 3rd), issued a split decision on Byju’s investor plea, potentially leading to a third member’s involvement. The case concerns Byju’s EGM and rights issue, challenged by four investors alleging mismanagement and transparency issues. Byju’s is restrained from utilizing funds raised until the dispute is resolved, affecting salary disbursements.
The Karnataka High Court has granted interim relief to Byju’s founder, Byju Raveendran, blocking potential ouster in the upcoming extraordinary general meeting (EGM). The court has deemed proposed resolutions invalid until the final hearing, securing Raveendran’s position. Byju’s has invoked legal provisions to assert that the EGM was scheduled without following proper procedures, emphasizing the invalidity of the resolutions proposed during the meeting. Amidst this legal battle, lenders have filed insolvency proceedings, posing further challenges for Byju’s.
