NCLT Inducts Glas Trust And Aditya Birla Into CoC Of Byju’s Think & Learn

NCLT inducts Glas Trust and Aditya Birla into CoC of Byju’s Think & Learn

They were removed from the list after the company's IRP, Pankaj Srivastava reconstituted the committee

The Bengaluru bench of the National Company Law Tribunal (NCLT) has inducted Glas Trust and Aditya Birla Finance, the financial creditors of the ed-tech firm Byju's, into the Committee of Creditors (CoC) and allowed the reconstitution of the panel. The order came after Glas Trust and Aditya Birla petitioned to be included in the CoC of Byju's parent Think & Learn.

The tribunal’s order read, "The reconstitution of the CoC carried out by the Interim Resolution Professional (IRP) on 31 August 2024, is set aside. The CoC constituted on 2t August 2024 is upheld and shall remain in effect.” Earlier, Glas Trust and Aditya Birla were part of the CoC, but were removed from the list after the company's IRP, Pankaj Srivastava reconstituted the committee.

The NCLT has directed the CoC to submit their recommendation on the appointment of the RP. Glas Trust had earlier pointed out that the RP was biased. Glas trust had held, "The 03 September 2024 resolution passed by the reconstituted CoC, which appointed the IRP as the RP, is set aside. In any subsequent resolutions, if passed by the reconstituted CoC, are also nullified.”

The bench admonished the RP for misleading the tribunal.

The judges remarked, "The IRP has a duty to assist the tribunal with integrity, but the conduct of the IRP has been filed with the intent to mislead the tribunal. His conduct is not fit and proper as expected from an officer of the tribunal.”

The tribunal ordered disciplinary proceedings against Srivastava by the Insolvency and Bankruptcy Board of India (IBBI).

However, Srivastava claimed that the committee was formed provisionally due to pressure from Glas Trust to establish the CoC after the Supreme Court overturned the appellate tribunal's order toend the insolvency proceedings. (Glas Trust represents US lenders that offered the term loan to Byju's).

The counsel for the RP had argued that Glas Trust's claim to be included in the CoC was contested because of a pending case in a New York court over Byju's term loan.

On the other hand, the counsel for Glas Trust submitted that once the CoC is formed, the RP does not have the authority to reconstitute it, as that power rests with the NCLT.

Similarly, Pramod Nair, who represented Aditya Birla, stated that the IRP could revise the amount but not the committee’s status.