Think and Learn’s insolvency proceedings at NCLT are ongoing at the behest of GLAS Trust, a custodian claiming to represent an aggrieved set of international lenders.
The lawsuit filed by Shailendra Ajmera, the EY-backed resolution professional of Think and Learn, claims that Byju’s had a commercial arrangement with Dubai-based More Ideas General Trading and the latter has failed to repatriate payments to the former, as per those in the know.
The lawsuit also implicates Byju’s former directors Byju Raveendran, Riju Ravindran and Divya Gokulnath pinning responsibility on them for making good the claim, they said.
More Ideas General Trading had not responded to ET’s queries until press time.
“Byju’s founders vigorously dispute all claims made against them by the Resolution Professional (RP) of Think & Learn in the CIRP procedure,” said a statement made on their behalf.
Byju’s founders claimed they had filed cases in court challenging developments related to the insolvency proceedings and that the RP was trying to shift attention from those.
“The latest case is similar to a series of baseless and false cases filed by the RP in the last few months in an attempt to shift the attention from the two main cases filed by the founders in NCLT — The first one for the RP’s removal on grounds of collusion and fraud and the second one challenging the authority of GLAS to represent the lenders”
As per sources familiar with the lawsuit filed by Think and Learn’s RP, More Ideas General Trading had the rights to market the Byju’s range of products in Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates on a revenue sharing arrangement.
The lawsuits were filed through Ajmera’s lawyers Chandhiok and Mahajan.
Shailendra Ajmera and Chandhiok and Mahajan had not responded to ET’s queries until press time on Wednesday.
Riju Ravindran had in early April filed a petition with the NCLT claiming Ajmera should be removed as the RP of Think and Learn because EY has been an adviser to the company prior to its admission into insolvency proceedings, raising the issue of conflict of interest. He has also claimed that EY’s appointment is a fraud.
Ravindran has also claimed that the insolvency proceedings of Think and Learn are a sham because GLAS Trust which claims to represent the company’s lenders did not have a locus standi to enforce claims against the company because it does not have the backing of majority of the lenders.
GLAS Trust was entrusted with acting as a custodian for a $1.2 billion term loan that was taken by Think and Learn’s US subsidiary. That loan was guaranteed by Think and Learn. This is why Glas Trust claims it has rights to enforce insolvency proceeding against the company in India.
Underlying the loan was a key clause that said that any action to enforce repayment of the loan will require consent of majority of lenders. Byju’s former directors have repeatedly claimed that this clause is unmet and hence the insolvency proceedings in India are void.
“BYJU’s founders reserve all rights to bring actions against those parties that have caused damage to them personally and their businesses. Claims have been raised in India against Glas Trust, the former subsidiary of Think & Learn, that Glas Trust now claims to control and others. Claims are being contemplated against those parties in other jurisdictions,” as per the statement made on behalf of the founders.
