The National Company Law Tribunal (NCLT) issued an order on February 27 instructing Byju’s to place funds garnered from the rights issue into an escrow account until the resolution of a complaint filed by four investors citing oppression and mismanagement.
In addition, the tribunal urged Byju’s to consider extending the deadline for the rights issue closure to safeguard the petitioners’ rights to apply for shares under their entitlements without prejudice.
Moreover, the tribunal clarified that it has set aside the investors’ plea to halt the rights issue for judgment and has instructed the involved parties to submit written arguments for the case.
The directive from the tribunal, dated February 28, revealed that the authorities have been given a two-week period to reply upon receiving the notice, with an extra two weeks granted for submitting any response or rejoinder. The next hearing for the case is set for April 4, 2024.
This development follows NCLT’s decision to reserve judgment on interim measures in response to the investors’ complaint of oppression and mismanagement against Byju’s, made just a day prior.
