The Chennai bench of the National Company Law Appellate Tribunal (NCLAT) today dismissed a petition filed by certain foreign investors of BYJU’S. These investors sought an order against the ongoing proceedings in the Bengaluru bench of the National Company Law Tribunal (NCLT).
The learned judges of NCLAT conveyed to the investors’ counsel that as an appellate court, they cannot intervene in matters yet to mature in NCLT. They stated, “We cannot issue an order on a matter that is yet to be decided by NCLT,” further adding, “We cannot substitute the actions of NCLT.”
Despite this clarification, the investors’ counsel continued to press for NCLAT to direct NCLT to expedite the hearing. The bench sternly responded, stating, “You cannot misuse the appellate jurisdiction… We only get involved if and when a substantial right has been violated.”
BYJU’S counsel pointed out that the investors had not even formally filed an application or affidavit regarding the alleged breach of the interim order by BYJU’S. He argued, “They haven’t even filed a petition for contempt in NCLT…” highlighting the investors’ disregard for due process. The court also noted that the investors’ petition was incomplete and lacked essential records, warning, “If you don’t come up with complete records, we can be your worst enemy.”
In conclusion, the court deemed the investors’ appeal unsustainable.
