Byju's may challenge NCLT's insolvency proceedings order against its parent

Edtech company Byju’s parent Think & Learn will challenge the National Company Law Tribunal’s (NCLT’s) order on insolvency proceedings and may approach the National Company Law Appellate Tribunal (NCLAT) in the next few days, sources claimed. With the NCLT appointing Pankaj Srivastava as the interim resolution professional (IRP), time is running out for Byju’s as the committee of creditors (CoC) begins to be formed. Explaining the importance of reaching a settlement before the CoC is formed, Ashish Pyasi, Partner, Aendri Legal said: “On admission of petition, the legal options available include challenging the order before the appellate tribunal. If possible, then the parties can settle the matter and the resolution process can be withdrawn. If the withdrawal is started before the constitution of the committee of creditors, then the consent of 90 per cent of creditors would not be required. However, if there is no settlement with the petitioner, then withdrawal can happen only once the same is approved by 90 per cent of the CoC.” “Byju has the option of appeal against the order of the NCLT Bench and seek a stay of the order. However, until such an order is issued, the insolvency proceedings will likely commence,” said Prashanth Shivadass, Partner, Shivadass & Shivadass Law Chambers.