NEW DELHI: In a breather for embattled edtech company Byju’s, the National Company Law Tribunal (NCLT) on Thursday refused to stay the extraordinary general meeting (EGM) called by the board of directors to raise the capital via the rights issue.
The tribunal in Bengaluru has given April 4 as the next date of hearing.
According to sources, the tribunal judge was convinced by the evidence submitted and arguments made by Byju’s counsels, who made a case that the “only objective of the petitioners is to be restrictive”.
The court also cited a Supreme Case judgment to conclude that since the only objective is to increase the authorised capital for the rights issue, there is no reason to pause or postpone the EGM.
Last month, the NCLT directed Byju’s to keep funds received from the rights issue in an escrow account till the disposal of the case. As funds remain stuck, Byju’s has mandated all its employees to work from home as it gives up office spaces across the country amid several cash crunch.
“We processed part salaries for everyone for February to the extent of capital we could get outside the rights issue. The company will pay the balance once the rights issue funds are available, which we expect shortly,” the company had said in a letter to employees. The company is giving up office spaces as the leases expired, keeping only its Bengaluru-based headquarters.