05 September 2024
The National Company Law Tribunal has deferred its decision on a plea filed by US-based lender Glas Trust LIC seeking a stay on further meetings of the committee of creditors appointed in the Byju's insolvency case.
A representative for Glas Trust, which has extended a $1.2-billion Term Loan B to the Bengaluru-based edtech company, was on Tuesday supposedly ousted from the committee of creditors by Byju's insolvency resolution professional, Pankaj Srivastava.
Srivastava has admitted Glas Trust's claims under 'contingent liability'. The US lender has sought the removal of the resolution professional alleging fraud. A Bengaluru bench of the NCLT led by Justices K. Biswal and Manoj Kumar Dubey on Wednesday heard a petition by Glas Trust seeking a stay on further meetings to be conducted by the committee of creditors in the ongoing insolvency case against Byju's.
"We want the bench to direct that the COC should not hold any further meetings. Ultimately, it is the question of NCLT's power, and the (insolvency resolution professional) is seeking to annul the adjudicating authority's power by fraudulent methods. IRP has no power to adjudicate," Glas Trust's counsel argued before the bench.
The National Company Law Tribunal has deferred its decision on a plea filed by US-based lender Glas Trust LIC seeking a stay on further meetings of the committee of creditors appointed in the Byju's insolvency case.
A representative for Glas Trust, which has extended a $1.2-billion Term Loan B to the Bengaluru-based edtech company, was on Tuesday supposedly ousted from the committee of creditors by Byju's insolvency resolution professional, Pankaj Srivastava.
Srivastava has admitted Glas Trust's claims under 'contingent liability'. The US lender has sought the removal of the resolution professional alleging fraud. A Bengaluru bench of the NCLT led by Justices K. Biswal and Manoj Kumar Dubey on Wednesday heard a petition by Glas Trust seeking a stay on further meetings to be conducted by the committee of creditors in the ongoing insolvency case against Byju's.
"We want the bench to direct that the COC should not hold any further meetings. Ultimately, it is the question of NCLT's power, and the (insolvency resolution professional) is seeking to annul the adjudicating authority's power by fraudulent methods. IRP has no power to adjudicate," Glas Trust's counsel argued before the bench.
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