NCLT serves 3 notices to BYJU'S over unpaid dues
The National Company Law Tribunal (NCLT) has issued three notices to Think and Learn Pvt Ltd, the parent company of edtech giant BYJU'S, over unsettled debts owed to operational creditors. The company is currently facing litigation from seven vendors in the NCLT due to a severe financial crisis. The publishing firm McGraw Hill, BPO service provider Cogent E-services, and AG Automation have filed these cases. A hearing is scheduled for July 3.
BYJU'S given deadline to respond to NCLT notices
The NCLT bench has granted BYJU'S a two-week period to respond to the notices, followed by an additional week for the petitioner to file a rejoinder. According to the petitions, BYJU'S owes McGraw Hill ₹1.43 crore and approximately ₹6 crore to Cogent E-services. This development comes after reports that a group of employees are planning legal action for their unpaid dues from BYJU'S.
BYJU'S leadership faces significant upheaval amid crisis
BYJU'S is undergoing significant changes with its investor board members resigning due to disagreements with founder and CEO BYJU Raveendran. Recently appointed CEO Arjun Mohan and CFO Ajay Goel have also stepped down from their positions. In response, the company has established an advisory council featuring veterans like Mohandas Pai and Rajnish Kumar, who plan to resign after their one-year contract ends in June this year.
BYJU'S faces multiple insolvency pleas amid financial crisis
At least seven vendors have initiated legal action against BYJU'S at the NCLT to recover their outstanding payments. The company is also defending against an oppression and mismanagement plea filed by its investors in the NCLT. The Board of Control for Cricket in India was the first to file an insolvency plea against BYJU'S in November 2023, claiming that the company had defaulted on ₹158 crore payment. This plea is currently at an advanced stage of hearing at the NCLT.
