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The Chennai bench of the National Company Law Appellate Tribunal (NCLAT) on Monday dismissed a petition filed by a group of foreign investors of the beleaguered edtech giant Byju’s against the company.
The investors approached NCLAT against Think & Learn Pvt Ltd owned Byju’s, claiming the company failed to comply with the National Company Law Tribunal (NCLT) orders in the ongoing proceedings over oppression and mismanagement within the company [MIH Edtech Investments and Ors. v. Think and Learn Pvt Ltd]
Judicial member, Justice Sharad Kumar Sharma and technical member Jatindranath Swain dismissed an appeal filed by the four investors – MIH EdTech Investments, a subsidiary of Prosus NV, General Atlantic Singapore, Peak XV Partners Operations LLC, and Sofina, according to media platform Bar & Bench.
The investors filed an appeal against the NCLT order from April 23 for refusing to pass an immediate order against Byju's for the alleged violation of directives.
According to sources, the judges of NCLAT informed the investors’ counsel that as an appellate court, they cannot intervene in matters that are “yet to mature” in NCLT.
“We cannot issue an order on a matter that is yet to be decided by NCLT,” the Bench observed.
“We cannot substitute the actions of NCLT,” it added.
Despite the clarification, the investors' counsel continued to press for NCLAT to direct NCLT to expedite the hearing, sources said.
“You cannot misuse the appellate jurisdiction. You cannot approach us for any order issued by NCLT. We only get involved if and when a substantial right has been violated,” the Bench said.
It issued a strong rebuke to the investors’ counsel: “If you are not open to hearing the court, then we will be constrained to pass certain orders.”
Byju’s counsel said the investors had not even formally filed an application or affidavit regarding the alleged breach of the interim order by Byju’s.
“They haven’t even filed a petition for contempt in NCLT and yet, they have come here to argue as if NCLAT must suo moto take it up for hearing,” he argued, highlighting the investors’ blatant disregard for the due process.
The court also noted the investors’ petition was incomplete and lacked essential records.
“If you don’t come up with complete records, we can be your worst enemy,” the Bench warned.
The court concluded that the investors' appeal was not sustainable.
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