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Informist, Wednesday, Jan. 29, 2025

 

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--NCLT sets aside lender panel rejig by BYJU's parent co resolution officer 
--CONTEXT: NCLT order on insolvency proceedings against BYJU's parent co 
--CONTEXT: GLAS Trust challenged removal from BYJU's parent co lender panel 
--NCLT upholds BYJU's parent co lenders' panel that was constituted Aug 21 
--NCLT: Aditya Birla Fin restored as financial creditor to BYJU's parent co 
--NCLT: GLAS Trust, Aditya Birla Fin, others in BYJU's parent lenders' panel

 

NEW DELHI – The Bengaluru bench of the National Company Law Tribunal on Wednesday upheld the previous committee of creditors of debt-ridden Think & Learn Pvt. Ltd., parent of online educational services company BYJU'S, which was constituted on Aug. 21. The previous committee of creditor members included the company's US lender GLAS Trust Co. LLC., Aditya Birla Finance Ltd., and ICICI Bank Ltd.

 

The company's US lender GLAS Trust Co. had challenged its removal from Think & Learn's committee of creditors and sought the removal of the resolution professional Pankaj Srivastava. Aditya Birla Finance had accused the resolution professional of playing fraud in the insolvency process of Think & Learn by classifying it as an operational creditor and not a financial creditor. Aditya Birla Finance was a creditor to Think and Learn. 

 

The tribunal on Wednesday restored Aditya Birla Finance to the status of a financial creditor, with all attendant rights, privileges, and obligations, as envisaged under the Insolvency and Bankruptcy Code. Further, the tribunal said that the resolution passed by the reconstituted committee of creditors in September, which appointed the interim resolution professional Srivastava as the resolution professional, is set aside. In addition, any subsequent resolutions, if passed by the reconstituted committee of creditors, are also nullified, said the tribunal.

 

The conduct of Srivastava in the present case was filed with the intent to mislead the tribunal. The actions and decisions taken by Srivastava were prejudicial to the interests of the insolvency process outlined by the Insolvency and Bankruptcy Code, 2016 and to the stakeholders. "Further, the conduct of IRP (insolvency resolution professional) is not fit and proper as expected from an officer of the Tribunal. The above conduct on part of IRP needs to be dealt by way of disciplinary proceeding by the IBBI (Insolvency and Bankruptcy Board of India)," said the tribunal. Hence, the insolvency board may conduct the necessary investigation in this matter, it added.

 

On Aug. 2, the National Company Law Appellate Tribunal had set aside the order passed by the Bengaluru bench of the National Company Law Tribunal in July to start insolvency proceedings against Think & Learn. The appellate tribunal had passed the order after it was informed that Think & Learn and its operational creditor, the Board of Control for Cricket in India, had arrived at a settlement in the insolvency case. However, after various oppositions from GLAS Trust and Aditya Birla Finance, the apex court rejected the appellate tribunal's order and restored the insolvency proceedings against Think & Learn, to be heard by the Bengaluru tribunal. Earlier, the Board of Control for Cricket in India had filed an application seeking withdrawal of its insolvency proceedings against Think & Learn, which is yet to be decided.  End

 

Reported by Surya Tripathi

Edited by Deepshikha Bhardwaj

 

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