NCLT Steps In Over Byju’s K3 Asset Sale, Orders Status Quo Till Sept 21

The National Company Law Tribunal (NCLT) has ordered a status quo on assets auctioned by the resolution professional (RP) of Think and Learn Private Limited (TLPL), the parent company of Byju’s, in one of its subsidiaries. According to a PTI report, the Bengaluru bench has also stopped any further disposal of the assets until the next hearing on September 21.

The order came amid allegations that assets worth around ₹150 crore were sold for about ₹16 crore. The plea was filed by the RP of Byju’s K3 Education and Kritikal Solutions, which sought protection of the assets while their ownership and auction proceeds are verified.

The tribunal said the current status of the auctioned assets was not known and found that a halt on further transfer was necessary at this stage. It said the order would not cause irreversible harm to any party, including the successful bidder.

NCLT Seeks Details Of Auctioned Assets

The tribunal allowed Comprint Tech Solutions, the buyer of the assets, to be added as a party to the proceedings. It directed the company to submit within a week a sworn inventory of the assets it purchased, along with their storage location and photographs.

The applicants had alleged that the TLPL resolution professional had not provided documentary evidence to establish ownership of the assets that were auctioned. They also raised concerns about the buyer’s registered address.

According to the plea, the registered address of Comprint Tech Solutions was located in an under-construction building that was found locked during repeated visits. The applicants also said at least 15 vehicles carrying the assets had left the warehouse for Mumbai in the days before the proceedings.

Dispute Over ₹150 Crore Asset Valuation

The NCLT noted in its order that the articles, which were claimed to be worth around ₹150 crore, had been auctioned for approximately ₹16 crore. It observed that there was a possibility of the buyer disposing of the assets to avoid becoming involved in future litigation.

The suspended directors of Byju’s also supported the plea and argued that there was no need to rush the auction. They said the insolvency process for TLPL was intended to revive the company and did not require its assets to be sold at what they described as a low value.

The tribunal has also directed the TLPL resolution professional to comply within a week with an earlier August 20 order seeking details related to the transaction. The status quo on the assets will remain at least until concrete evidence emerges, with the next hearing scheduled for September 21.