The National Company Law Tribunal (NCLT), Bengaluru, has directed parties to maintain status quo over assets auctioned during the insolvency proceedings of Think and Learn Private Limited, the parent company of Byju’s, after a dispute arose over their ownership.
The direction came after Kritikal Solutions Private Limited, the Resolution Professional of Byju K3 Education Private Limited, approached the tribunal alleging that assets claimed to be worth nearly ₹150 crore had been auctioned for about ₹16 crore.
The applicant sought protection of the disputed assets, contending that their removal, transfer or further disposal could prejudice the insolvency proceedings of Byju K3 and make it difficult to secure the assets if its ownership claim was ultimately upheld.
The matter was heard by an NCLT Bengaluru Bench comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada.
The dispute traces back to an auction notice issued on August 2 during the insolvency process of Think and Learn. Comprint Tech Solutions (India) Private Limited emerged as the successful bidder in the auction. However, Kritikal Solutions subsequently questioned whether all the assets covered by the auction actually belonged to Think and Learn.
The applicant maintained that several articles included in the auction were connected with Byju K3 and that questions surrounding their title required adjudication before the assets could be allowed to change hands.
Concerns were also raised regarding the successful bidder’s premises. It was submitted before the tribunal that the company’s registered address was situated in an under-construction building and that the premises had allegedly been found locked during visits, adding to the apprehension that the assets could become difficult to trace or recover.
The Resolution Professional representing Think and Learn opposed the application. It was argued that Byju K3 functioned as a service provider and that the hardware in question had been procured and supplied by Byju’s. Consequently, the service relationship, according to the RP, did not establish any ownership rights in favour of Byju K3 over the hardware or software.
After considering the rival submissions, the tribunal observed that the ownership question could not be conclusively determined at the present stage. While certain assets may have been owned by Think and Learn, the title to the remaining assets required further examination.
The Bench consequently considered it appropriate to preserve the existing position until the competing claims could be properly examined and relevant material placed before the tribunal.
Accordingly, the NCLT directed the Resolution Professional of Think and Learn as well as Comprint Tech Solutions to maintain status quo with respect to the articles, equipment and other assets covered by the August 2 auction notice.
The interim protection is aimed at preventing any further transfer, removal or disposal of the disputed assets while the ownership controversy remains pending. The matter is scheduled to be considered further by the tribunal.
The development adds another complication to the already protracted insolvency proceedings involving Byju’s. At the heart of the latest dispute is not merely the valuation at which the assets were auctioned, but the more fundamental question of who actually holds title over the assets that were put up for sale.
The NCLT’s intervention ensures that the disputed assets remain preserved for the time being, leaving the competing ownership claims to be examined in the subsequent proceedings.
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