The Aryavarth Express
Agency(Karnataka): The Karnataka High Court, on Wednesday, decided to prolong the interim protection for Byju Raveendran, the CEO of Think and Learn Private Limited, which operates the ed-tech giant BYJU’S, preventing his removal by the company’s investors. This decision postpones any action stemming from a resolution passed during the extraordinary general meeting on February 23, 2024, which had reportedly sought Raveendran’s ouster.
The extension, valid until March 28, was granted by Justice S Sunil Dutt Yadav. This decision came after the company’s legal representation requested additional time to respond to the initial set of objections raised by the investors involved in the case.
The investors have raised questions regarding the legal validity of the petition filed by the company, as well as the initial ex-parte order. Their stance is based on the argument that the dispute between BYJU’S and its investors, currently under review by the National Company Law Tribunal (NCLT), falls outside the realm of arbitration.
Senior Advocate K.G. Raghavan, representing Think and Learn Private Limited, voiced concerns over what he termed as “fraud” objections by the investors, criticizing their approach to the Indian legal system despite their status as foreign investors. Raghavan’s objections will be considered formally by the court once submitted in writing.
The bench has scheduled to revisit the matter on March 28, 2024, providing time for the company to file a detailed rejoinder to the investors’ preliminary statement of objections. The interim order previously granted has thus been extended, maintaining the status quo and ensuring Raveendran remains in his position as CEO for the time being.
This legal tussle highlights the complex dynamics between the company’s management and its investors, amidst broader discussions on corporate governance and the rights of shareholders within India’s burgeoning startup ecosystem.