Karnataka High Court sets aside NCLT stay on BYJU’S second rights issue
Justice SR Krishna Kumar stated that the order has been issued on its merits and that the case has been remanded to the NCLT for further proceedings.
The Karnataka High Court reportedly set aside an order issued by the National Company Law Tribunal (NCLT) that had barred edtech company from moving forward with a second rights issue.
Justice SR Krishna Kumar, who had reserved his judgement on the matter last week, stated the order has been issued on its merits, and that the case has been remanded to the NCLT for further proceedings, Bar and Bench reported.
The report added that the detailed judgement would be made available tomorrow.
In an order dated June 12, NCLT’s Bangalore bench had directed BYJU’S to maintain the “status quo” for existing shareholders and their shareholding and restrained it from going ahead with a second rights issue.
The “present rights issue” or “second rights issue” was proposed by BYJU’S through an offer letter dated May 11. This issue was between May 13 and June 13.
“The Respondents are further directed to keep the amounts collected so far since the opening of the second rights issue in relation to this offer in a separate account which should not be utilised till the disposal of the main petition,” the NCLT order noted.
The order sought complete details of the relevant escrow bank accounts from the opening of the rights issue on January 29 to the present date. All the details have to be filed within ten days from June 12. The matter is next listed for July 4, 2024.
Think and Learn Pvt Ltd, the parent company of BYJU’S, along with Byju Raveendran, filed writ petitions against the June 12 order of the NCLT. Typically, NCLT orders are appealed before the National Company Law Appellate Tribunal (NCLAT).
The Bengaluru-based company is fighting multiple legal battles with its investors and lenders.
Edited by Suman Singh
