Byju's seeks arbitration in dispute with investors; NCLT adjourns hearing to April 23

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Key Points

The National Company Law Tribunal (NCLT), Bengaluru, on Thursday heard the latest arguments in the Byjus versus investors saga and adjourned the matter to April 23..

Separately, Byjus senior counsel on Wednesday filed a separate plea to transfer the matter to arbitration, an agreement clause which if invoked will take the case away from NCLTs jurisdiction...

During Thursday's proceedings, NCLT noted that it would be a blatant violation of its interim order dated February 27 if Byjus has issued shares to investors for the rights issue before completion of the increase in authorised share capital..

On March 28, the NCLT had refused to grant a stay on investor pleas seeking to stop Byjus extraordinary general meeting (EGM) to increase the authorised share capital of the company to account for the rights issue..

On Tuesday, the Bengaluru-based startup laid off about 500 staffers, largely across sales and marketing functions. Byjus had termed the layoffs as unfortunate, in a statement, saying the company will put this situation behind it with majority investor support for the rights issue soon..

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