Allegations of Mismanagement in Think and Learn Pvt Ltd ( Byju’s ): NCLT directs to Halt Second Rights Issue [Read Order]
The NCLT restrained the Byju’s from going ahead with the present rights issue which is in progress till the disposal of the main petition.
Allegations of Mismanagement – Think and Learn Pvt Ltd – Byjus – NCLT – Halt Second Rights Issue – taxscan
Allegations of Mismanagement – Think and Learn Pvt Ltd – Byjus – NCLT – Halt Second Rights Issue – taxscan
The National Company Law Tribunal ( NCLT ) has directed Byju's to halt the company's controversial second rights issue. The Tribunal directed to maintain the status quo while dealing with the case regarding allegations of mismanagement in Think and Learn Pvt Ltd( Byju’s ).
The petitioner, M/s. MIH Edtech Investments B.V. & Ors contended that the Enforcement Directorate (ED) and Ministry of Corporate Affairs (MCA) investigations going on against the Respondent Company
The NCLT interim order restrains Byju's from proceeding with the ongoing second rights issue until the main petition is resolved. Further, Byju's is required to keep all funds collected from the second rights issue in a separate escrow account, which must not be utilized until further notice.
It was alleged that Byju's violated terms of NCLT order dated February 27, 2024, which recorded Byju's commitment to not allot any new shares without increasing the authorized share capital. Further contended that funds received from the rights issue were to be kept in a separate escrow account until the resolution of their plea. Despite this, Byju's went ahead with allotting shares to certain shareholders on March 2, 2024, and initiated the second rights issue.
The special bench consisting of Judicial Member M.S.S. Sundaram and Technical Member Manoj Kumar Dubey directed responded to provide comprehensive details of the share allotments made on March 2, 2024, both before and after the increase in authorized share capital. This includes information about the shareholders, the number of shares they held, their entitlement as per the rights offer, and the details of funds paid and utilized.
The NCLT restrained the Respondents from going ahead with the present rights issue which is in progress till the disposal of the main petition. The Respondents are further directed to keep the amounts collected so far since opening of the second rights issue in relation to this offer in a separate account which should not be utilised till the disposal of the main petition in CP No. 18/BB/2024. Further, status quo with regard to existing shareholders and their shareholding shall be maintained till the disposal of the main petition.
To Read the full text of the Order CLICK HERE
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