Troubled edtech sector company Byju’s has filed an application in the National Company Law Tribunal (NCLT) to refer its dispute with investors to arbitration. However, investors have opposed this.
Baijus’ lawyer argued in the court that as per the shareholding agreement, such cases should be sent for arbitration before going to NCLT.
Sources said the investors’ lawyers have cited various laws and sections of the law which state that such a case cannot be referred to arbitration in view of the alleged violations and the demand being made.
Meanwhile, NCLT will now hear the case on April 23. This plea for arbitration is interesting, as it would mean that the matter will go out of the jurisdiction of NCLT.
On February 27, Byju’s investors filed a petition challenging the company’s $200 million rights issue, alleging harassment and mismanagement.
NCLT, in its order on February 27, had directed the edtech firm to keep the money received from the rights issue in an escrow account.
First Published – April 4, 2024 | 11:15 PM IST
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