The Bengaluru bench of the National Company Law Tribunal (NCLT) has ordered a status quo on assets auctioned by the resolution professional (RP) of Byju’s parent company, Think and Learn Private Limited (TLPL).
This came after the RP of another Byju’s entity, K3 Education, raised objections to the sale, claiming that assets worth around ₹150 crore were auctioned for just about ₹16 crore.
The case, filed by Kritikal Solutions against Byju’s K3 Education.
A Bench of Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada said the ownership of several auctioned articles remained uncertain and that their preservation was necessary until evidence was produced to the court.
“Even if part of the auctioned articles actually belonged to TLPL, the ownership of the rest of the articles remains in haze,” the order stated.
The NCLT observed that maintaining the status quo would not prejudice either party, but the change in the position of the assets could not be undone.
Meanwhile, the successful bidder, Comprint, has been directed to provide a detailed inventory of the assets, photographs, and the complete address where they are stored. Both TLPL’s RP and Comprint have been asked not to alter the status of the assets.
How did the dispute start?
The dispute between the two parties concerns tablets, electronic equipment, and other articles stored in a warehouse used by TLPL, Byju’s K3, and Aakash.
The RP of Byju’s K3 claimed that a December 2024 communication from the logistics company Criticalog specifically identified K3’s assets. Those goods were allegedly handed over to TLPL’s security team and subsequently moved to an IndoSpace warehouse.
Despite repeated requests to inspect the warehouse and identify K3’s assets, it was refused, says K3’s RP
TLPL’s RP, meanwhile, disputed the ownership claim. He pointed out that Byju’s K3 was only a service provider and that the hardware had been procured and supplied by TLPL. The contents of the devices also belonged to TLPL.
Accordingly, TLPL’s RP issued an auction notice on August 2, following which the auction was conducted on August 14 and Comprint Tech Solutions (India) Private Limited emerged as the successful bidder.
The RP of Byju’s K3 then moved the NCLT to stop the auction.
The matter will be heard next on September 21.
TLPL, which operated the Byju’s edtech platform, was admitted to the corporate insolvency resolution process in July 2024 after the BCCI filed a case over unpaid sponsorship dues of around ₹159 crore.
Byju’s K3 Education, meanwhile, was already facing a separate insolvency case filed by operational creditor Kritikal Solutions Private Limited.
Currently, the two companies are being handled separately by different resolution professionals.