- The National Company Law Tribunal (NCLT) in Bengaluru issues notice on an insolvency plea filed by Oppo against ed-tech giant Byju’s.
- Oppo’s petition, accepted under Section 9 of the Insolvency and Bankruptcy Code, adds to the mounting legal challenges facing Byju’s.
- Unhappy investors, including Prosus and General Atlantic, have also filed an oppression and mismanagement suit against Byju’s, opposing a recent rights issue.
Byju’s, the embattled ed-tech company, faces further legal troubles as Oppo, a leading mobile phone manufacturer, files an insolvency plea against it. The National Company Law Tribunal (NCLT) in Bengaluru has issued notice on Oppo’s petition, accepted under Section 9 of the Insolvency and Bankruptcy Code. The plea is expected to be heard again in the last week of May, as the tribunal prepares to go on a summer break from May 3.
Oppo’s move adds to the growing list of legal challenges confronting Byju’s, including petitions from entities like the Board of Control for Cricket in India (BCCI), foreign lenders, and IT service providers. Additionally, a group of dissatisfied investors, led by Prosus and General Atlantic, has filed an oppression and mismanagement suit against the company, opposing a recent rights issue. The NCLT has directed the funds from the rights issue to be kept in a separate escrow account until the matter is resolved, with the next hearing scheduled for June 6.
