Byju's creditors back in reckoning

The tribunal ousts resolution professional and reinstates Glas Trust, Aditya Birla Finance as financial creditors

- Krishna Yadav

The National Company Law Tribunal on Wednesday reinstated Glas Trust Co. Llc and Aditya Birla Finance Ltd as the financial creditors of Byju's, in a major setback to the edtech company as the two lenders will now have a say in all decisions related to its insolvency process.

The tribunal found Byju's interim resolution professional (IRP), Pankaj Srivastava, unfit to oversee the insolvency process, and directed the Insolvency and Bankruptcy Board of India to take disciplinary action against him and disband the Committee of Creditors (CoC) that he constituted.

The NCLT also set aside the resolution passed by the reconstituted CoC on 3 September appointing Srivastava as the resolution professional.

The court directed that the reconstitution of CoC on 31 August 2024 be cancelled, and the erstwhile CoC from 21 August 2024 be retained.

The retained CoC from 21 August 2024 will convene the meeting to appoint a new RP to oversee the proceedings.

NCLT's Bengaluru bench passed the order on the pleas of Byju's lenders, US-based Glas Trust Co. and Aditya Birla Finance, which alleged fraud in creditor classification.