BYJU's Insolvency: NCLT Reinstates Aditya Birla Finance, Glas Trust As Financial Creditors

The National Company law tribunal (NCLT) on Wednesday called for the initiation of disciplinary actions against Pankaj Srivastava, who is the Resolution Professional (RP) of the ed-tech company Byju's.

The disciplinary actions have been ordered due to misconduct and actions that were  detrimental to the proceedings and stakeholders.

Additionally, the NCLT also ordered the reinstatement of both US-based Glas Trust and Aditya Birla Finance into the Committee of Creditors (CoC) after they were removed by the RP last year.

According to a Bar and Bench report, the bench said that the RP's decision to exclude them from the CoC was invalid.

In August last year, the CoC was reconstituted and both the creditors were removed by the RP.

Currently, the CoC which includes both creditors will take a call on appointing a new RP in place of Pankaj Srivastava.

"The Interim RP is directed to convene a meeting of the CoC as constituted on 21st August 2024 and submit their recommendation on appointment of the Resolution Professional," the Bar and Bench report quoted NCLT.

"Any resolutions passed by the invalid CoC (from September 3, 2024, onwards) are also nullified," the NCLT added.

Misleading Conduct

The Insolvency and Bankruptcy Board of India (IBBI) was directed by the tribunal to initiate a disciplinary inquiry against the RP, saying that his conduct was misleading and not in line with expectations from an officer of the tribunal.

"The conduct of the IRP in the present case has been filed with the intent to mislead the tribunal ...The above conduct on part of IRP needs to be dealt by way of disciplinary proceeding by the IBBI. Hence, the IBBI may conduct the necessary investigation in this matter," the Bar and Bench report quoted NCLT.