NCLT Orders IBBI To Initiate Disciplinary Action Against Byju's RP Pankaj Srivastava
The NCLT has directed disciplinary proceedings against Pankaj Srivastava, Byju’s RP, and reinstated Glas Trust LLC and Aditya Birla Finance Ltd in the Committee of Creditors (CoC), overturning his exclusion decision.;
NCLT orders IBBI to initiate disciplinary action against Byju's RP Pankaj Srivastava
Accuses him of acting on his own accord and misleading the tribunal
The National Company Law Tribunal (NCLT) has ordered disciplinary proceedings against Byju's Resolution Professional (RP) Pankaj Srivastava while reinstating the beleaguered ed-tech firm's lenders Glas Trust LLC and Aditya Birla Finance Ltd to the Committee of Creditors (CoC).
The tribunal set aside the RP's decision to exclude Glas Trust and Aditya Birla from the CoC constituted to oversee Byju’s Corporate Insolvency Resolution Process (CIRP). The NCLT ordered the Insolvency and Bankruptcy Board of India (IBBI) to initiate disciplinary action against the RP. It stated that his actions were "prejudicial to all stakeholders".
The order read, “The conduct of the IRP was filed with the intent to mislead the tribunal. He needs to be dealt by disciplinary proceedings by the IBBI, which must investigate.” Glas Trust and Aditya Birla have a combined 99.82 percent voting share in the CoC. (Glas Trust 99.41 percent, Aditya Birla 0.41 percent).
The NCLT ordered that the RP, who acted on his own accord, must be removed and the newly constituted CoC comprising Glas Trust and Aditya Birla, should appoint a new RP.
The original CoC constituted on 21 August, will reconvene to decide on a new RP to administer the CIRP. In October, the Supreme Court set aside the order of the National Company Law Appellate Tribunal that ended the ed-tech firm's insolvency process.
Effectively, the CIRP of Byju’s should have continued after the top court’s order.
