Embattled edtech Byju’s has settled with France-based Teleperformance Business Services, the Bengaluru Bench of National Company Law Tribunal (NCLT) was told on June 26, a second relief for the company during the day.
The tribunal asked Teleperformance to file a memo saying it wished to withdraw the insolvency plea in view of the settlement for it to close the case.
MCA findings
This comes at a time when law enforcement agencies cleared the firm of financial fraud but found certain lapses in corporate government. The investigation by the Ministry of Corporate Affairs has uncovered lapses in Byju’s corporate governance but did not find evidence of financial fraud.
The year-long probe conducted by the Ministry of Corporate Affairs, there was no evidence of activities like fund diversion or financial manipulation. However, the investigation did uncover governance lapses that have contributed to the company’s increasing losses.
In Feburary, NCLT issued notice to Byju’s on an insolvency plea filed by Teleperformance. According to Teleperformace, Byju’s agreed to pay the amount in three tranches -- ₹1.5 crore in the first trance, ₹2 crore in the second and ₹2.2 crore in the final tranche.
Other cases against BYJU’S
NCLT issued a notice in an insolvency plea filed by digital marketing firm Surfer Technologies against Byju’s. On February 28, another notice was issued on a plea filed by US-based non-bank loan agency Glas Trust Company LLC to admit the company to insolvency resolution process.
Byju’s is also fighting a legal battle with investors including investors, Prosus, General Atlantic, and Peak XV, which have sought to void a $200-million rights issue initiated in January by appealing to the National Company Law Tribunal (NCLT).