NCLT orders disciplinary action against Byju's Resolution Professional

New Delhi, Jan 30: The National Company Law Tribunal (NCLT) on Wednesday 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 bench passed the order while setting aside the RP's decision to exclude Glas Trust and Aditya Birla Finance from the CoC constituted to oversee the insolvency resolution process in respect of Byju's.

It has ordered the Insolvency and Bankruptcy Board of India (IBBI) to initiate a disciplinary enquiry against the RP, saying that his actions in the case were "prejudicial to all stakeholders". "The conduct of the IRP in the present case has been filed with the intent to mislead the tribunal. The above conduct on part of IRP needs to be dealt by way of disciplinary proceedings by the IBBI. Hence, the IBBI may conduct the necessary investigation in this matter," it ordered.

Glas Trust and Aditya Birla Finance combine for 99.82 per cent of the voting share in the CoC. Glas Trust has a voting share of 99.41 per cent, and Aditya Birla Finance has a voting share of 0.41 per cent. The tribunal further directed that the RP be removed and the newly constituted CoC, comprising Glas Trust and Aditya Birla Finance, take a call on appointing a new RP.

The NCLT pointed out that the resolution professional acted on his own accord in the case, adding that he conducted himself with the intention to "mislead" the tribunal. The original CoC, which was constituted on August 21, will now reconvene to decide on a fresh resolution professional to see through the insolvency process.

In October, the Supreme Court set aside an order of the National Company Law Appellate Tribunal that put an end to the ed-tech firm's insolvency process. In effect, the insolvency process of the embattled firm was set to continue by virtue of the top court's order.