Byju's requests arbitration in the midst of an investor disagreement

In order to pursue arbitration for its ongoing conflict with investors, Byju's has submitted an application to the National Company Law Tribunal. The edtech company filed for arbitration in order to resolve disputes pertaining to a $200 million rights dispute. The NCLT ordered official responses from both sides, despite Byju's denial of the investors' accusations. The next hearing is set for April 23.

The company raised $200 million to meet its operational requirement, specially expenses related to employee salaries.

A group of four investors -- Prosus, General Atlantic, Sofina, and Peak XV -- along with support from other shareholders, including Tiger and Owl Ventures, have approached NCLT against the EGM.

The petitioners' counsel during the hearing pointed out the egregious breach of the undertakings given to the courts by Byju's, including with respect to no allotment of securities without increasing the authorised share capital.

The NCLT took strong objection to any such violation and allotment and stated that its orders have to be followed scrupulously and any violation shall be taken very seriously.

Byju's strongly refuted the allegations. It claimed all allegations made by the foreign investor counsel were baseless. There was absolutely no violation of any of the interim court orders. Byju's will file necessary affidavits and detailed responses to counter allegations levelled by investor's counsel.