NCLT Orders Disciplinary Action Amidst Byju’s Insolvency Controversy

The National Company Law Tribunal ordered disciplinary action against Byju's resolution professional, Pankaj Srivastava, for misconduct. It reversed his decision to exclude Glas Trust and Aditya Birla Finance from Byju's Committee of Creditors, restoring their status as financial creditors and nullifying resolutions by the reconstituted CoC.

In a significant development, the National Company Law Tribunal (NCLT) has launched disciplinary proceedings against Pankaj Srivastava, the resolution professional for Byju's, citing misconduct. The ruling also overturned Srivastava's controversial decision to exclude Glas Trust and Aditya Birla Finance from the edtech company's Committee of Creditors (CoC).

The Bengaluru bench of the NCLT directed the Insolvency & Bankruptcy Board of India (IBBI) to investigate the conduct of Srivastava, declaring it as 'not fit and proper.' The tribunal also annulled the reconstitution of the CoC carried out on August 31, 2024, restoring Aditya Birla Finance's financial creditor status.

The ruling, following pleas from Glas Trust and Aditya Birla Finance, comes after previous insolvency proceedings against Byju's were halted. With the Supreme Court's intervention, the NCLT now reinstates the original CoC structure, reaffirming financial rights and responsibilities for Glas Trust and Aditya Birla Finance.

(With inputs from agencies.)