Byju's Crisis: Karnataka Court To Hear Case Related To Investors Today 

Edtech giant Byju's has been in constant turmoil. For the company, today is a significant day. The Karnataka High Court will hear the case about an investor's revolt today. 

The court will assess the legitimacy of any decisions that were made during an extraordinary general meeting that was conducted on February 23 by Think and Learn Private Limited, the parent organisation of Byju's. 

During the meeting, investors who hold more than 32 per cent of the company voted for the removal of Byju's CEO and Chairman, Byju Raveendran, his wife and co-founder, Divya Gokulnath, and his brother, Riju Raveendran. Byju Raveendran and his family stayed away from the EGM and called it "procedurally invalid." Raveendran and his family own 26.3 per cent of the company. 

A group of four investors of BYJU's—Prosus, General Atlantic, Sofina, and Peak XV—along with support from other shareholders, including Tiger and Owl Ventures, filed an oppression and mismanagement suit against the management of the company before the National Company Law Tribunal (NCLT), Bengaluru Bench. They seek to oust the founders and appoint a new board. 

However, the validity of the meeting was challenged by Byju's. As of now, an interim order has been issued by the Karnataka High Court that has put a hold on the investor's decision. The matter will be taken for hearing today. 

During its petition, Byju's said that the EGM called by the investor was “merely a smokescreen designed to disrupt the management, control, and functioning of the company,"  as per a Times of India report. 

Apart from facing an investor battle, BYJU's is also dealing with financial constraints. The company recently sold most of its office space in India as a cost-cutting measure. Similarly, it recently released full payment for only 25 per cent of its employees. For the rest of the work force, it has made only partial payments.