Jul 04, 2024 02:05 PM IST
NCLT warned the crisis-hit company that in case employees are not made, an audit will be made by the Institute of Chartered Accountants of India.
The National Company Law Tribunal (NCLT) told embattled edtech company Byju’s to pay salaries irrespective of whether it raised funds through its rights issue or not. NCLT also warned the crisis-hit company that in case employees are not made, an audit will be made by the Institute of Chartered Accountants of India. The Bengaluru bench of NCLT said while hearing a plea by employees seeking payment of salaries, “You are a company that is functioning. Surely you should be having revenues.”
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Directing Byju’s to file a response to the employees’ application, the tribunal listed the plea for hearing in the coming week. Byju’s said that it has paid April and May salaries but the company is yet to make February and March payments in full.
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However, the company said that it does not have access to the funds it raised through the rights issue in February for salary delays as they are tied up in an escrow account on the orders of NCLT till the disposal of the case. This comes as at least seven vendors have also sued Byju’s at NCLT to recover their dues.
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The plea will be heard by a division bench of the high court on July 5 and NCLT, on the directions of the high court, would on July 9 rehear the plea for a stay of the second rights issue of the company.
