NCLT stays Byju's bidding process till next hearing
The case is part of the ongoing insolvency process involving Byju's, which has faced financial stress, legal disputes with lenders, and multiple regulatory and operational challenges over the past year.
Insolvency tribunal NCLT has directed the resolution professional of debt-ridden Think & Learns, which owns edutech brand Byjus, not to proceed with Form G till the next hearing scheduled on August 31, 2026.
The Form G bidding process under Insolvency and Bankruptcy Code (IBC) is a public invitation by a Resolution Professional for prospective buyers to submit an Expression of Interest (EoI), featuring asset details, eligibility criteria, and a submission timeline.
A two-member Bengaluru bench of the National Company Law Tribunal (NCLT) said--not to proceed with the Form G invitation for bids or finalise the list of prospective resolution applicants until August 31, when it will hear the founders' challenge to the claim in the company's insolvency.
"Until 31st August, you (resolution professional) should not go on with the Form G," the bench said.
NCLT direction came over an application filed by founders Byju Raveendran and Riju Ravindran questioning the quantum of the claim of GLAS Trust Company LLC, the US agent for lenders to a $1.2-billion term loan taken by a group entity, whose admitted claim of about Rs 11,433 crore gives it more than 99% of the voting power on the committee of creditors.
The founders argued that allowing the claim to stand without scrutiny could significantly influence the corporate insolvency resolution process and affect the outcome of any bidding.
The case is part of the ongoing insolvency process involving Byju's, which has faced financial stress, legal disputes with lenders, and multiple regulatory and operational challenges over the past year.