BYJU’S vs investors: Karnataka High Court extends stay on EGM outcome until March 28

In BYJU'S vs investors matter, the Karnataka High Court on March 13 extended its earlier interim order that stated the edtech’s EGM outcome would not be given effect until the matter is next heard by court.

The court has listed the matter for hearing on March 28.

This comes as BYJU’S had moved the Karnataka High Court seeking a stay on the outcome of the firm’s extraordinary general meeting (EGM) called by a group of investors.

"The decision, if any taken by the shareholders of the petitioner company in the extraordinary general meeting scheduled on Friday, February 23, shall not be given effect until the next date of hearing," the High Court had earlier said.

Shareholders had unanimously passed all resolutions put forward for vote at EGM held on February 23. The resolutions passed included request for resolution of outstanding governance, financial mismanagement, compliance issues at BYJU’s, reconstitution of Board, change in leadership and ouster of Byju Raveendran as CEO.

Following the court’s decision, BYJU’S released a statement saying, the court has granted time to Think and Learn to file a rejoinder to the response filed by some of the investors.

“The stay against the purported resolutions at the 'so called' EGM that the investors attempted to pass on 23 Feb 2024 continues and, as such, none of those resolutions can be given effect to. They are unactionable.”

BYJU's had earlier said the Karnataka High Court granted relief to the company concerning the upcoming EGM. The petition filed by BYJU's under Section 9 of the Arbitration and Conciliation Act, 1996, alleged that certain investors had violated the company's Articles of Association (AoA) and Shareholders' Agreement (SHA) by calling for the EGM.

Separately, the National Company Law Tribunal (NCLT) heard the Board of Control for Cricket in India (BCCI) plea seeking insolvency proceedings against BYJU’S. The cricket administrative body claims unpaid dues of ₹158 crore whereas BYJU’S is seeking arbitration proceedings.

The tribunal listed the matter for hearing on March 20 next. The firm said it will to complete arguments next week. The NCLT is likely to pronounce the order on BCCI's insolvency petition against Byju's next week after arguments conclude.