Updated March 13th, 2024 at 16:29 IST

BYJU’S EGM: Karnataka High Court extends stay on investor resolutions

Court grants time to Think and Learn to file a rejoinder to the response filed by the investors.

Reported by: Business Desk
BYJU'S | Image:X Photo
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More time: Embattled edtech BYJU’S received an interim relief from the Karnataka High Court as the stay on investors’ resolutions has been extended till the next hearing on March 28.

A clutch of BYJU’S investors, including General Atlantic, Prosus and Peak XV had called for an Extraordinary General Meeting (EGM) on February 23.

This was after BYJU’S called for a $200 million rights issue from existing investors to continue operations.

Amid the resolutions passed by the investors, including the ouster of founder Byju Raveendran and his family from the company and its board, the edtech moved Karnataka High Court for an injunction.

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BYJU’S parent firm Think and Learn also has time to file a rejoinder in response to the reply filed by some investors, the company said.  

“In today's Karnataka High Court hearing, the court has granted time to Think and Learn to file a rejoinder to the response filed by some of the investors. The stay against the purported resolutions at the 'so called' EGM that the investors attempted to pass on February 23, 2024 continues and, as such, none of those resolutions can be (effective). They are unactionable. The matter will next be heard on 28th March,” BYJU’S said.

BYJU’S had earlier approached the Karnataka High Court against the investors for the EGM to not be held, but the Court did not put a stay on the same. However, the Court obstructed for the resolutions to be implemented in the EGM till the next hearing, i.e. March 13.

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While the edtech approached the Karnataka High Court, the investors have knocked on the doors of the National Company Law Tribunal (NCLT), which asked for BYJU's to park the money raised in an escrow account. This has impacted salary payments for employees, BYJU'S said in an internal letter.

The Board of Control for Cricket in India (BCCI) also approached NCLT for a case pertaining to the non-payment of Rs 160 crore as part of a sponsorship deal with the edtech, which will be heard on March 13. 

 

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Published March 13th, 2024 at 16:18 IST