The dispute between Byju's and a group of investors has taken a new turn with Byju's seeking arbitration as a means to resolve the conflict. Byju's filed an application with the National Company Law Tribunal (NCLT), citing the arbitration clause in its agreement with the investors. The company argued that disputes should ideally be resolved through arbitration, as outlined in the agreement. The investors have been directed to respond to Byju's plea, and the next hearing is scheduled for April 23.
In response, the investor group, which includes Peak XV Partners, General Atlantic, Prosus, and Safina, has leveled fresh accusations against Byju's. They alleged that Byju's declared the outcome of an extraordinary general meeting (EGM) on March 29 to increase the authorized share capital before the conclusion of postal ballots on April 6. Additionally, they claimed that Byju's violated NCLT orders by allotting shares without first increasing the authorized capital. The investors also alleged that they were denied access to inspect documents, despite an NCLT order permitting them to do so.
Byju's has denied these accusations, stating that they are baseless. The company plans to file a response in an affidavit, asserting that there has been no violation of any court orders. The NCLT has directed Byju's to file a response to the main petition filed by the investors.
Earlier, the NCLT had deferred a ruling on a plea by Byju's management seeking a reversal of a previous order that required the proceeds of a $200-million rights issue to be placed in an escrow account. The tribunal noted that a third judge will be appointed to decide on the issue at a later date, after a two-judge bench of the tribunal expressed differing opinions on the matter.
