Riju Ravindran moved the National Company Law Tribunal on Thursday seeking removal of GLAS Trust as a financial creditor amid insolvency proceedings. The Byju’s co-founder contended that the US-based firm had authority to represent merely 17.38% of the voting rights of the consortium of term loan providers — asking the NCLT to direct it to “prove its authority to represent the creditors before it”. The matter is scheduled for hearing before the Bengaluru bench of NCLT on Friday.

According to the petition filed by Ravindran, GLAS can only take actions on behalf of lenders if it is authorised by lenders holding more than 50% of the term loan. He urged the insolvency tribunal to remove the company from the Committee of Creditors for Think and Learn and “consequently set aside and declare all decisions taken by the CoC” as null and void. He further alleged that GLAS has “fraudulently represented” itself to be a financial creditor before NCLT and obtained several orders based on it.

The firm currently represents Byju’s US-based creditor to whom the edtech startup owes $1.2 billion. The application was filed in connection with the main petition by cricket body BCCI —whose plea triggered the Corporate Insolvency Resolution Process against Byju’.

Ravindran has also urged the NCLT to “stay CIRP of Think and Learn” as an interim measure till GLAS is able to prove that it has the requisite authority to take actions on behalf of the lenders. He further alleged that the American firm was fully cognizant of its lack of authority and had ‘orchestrated’ an elaborate conspiracy involving Ernst & Young (EY) and successive Resolution Professionals to manipulate the CIRP process and perpetuate its illegal control over it.

Byju’s Alpha Inc, a wholly-owned US subsidiary of Think and Learn, had availed a loan facility amounting to approximately USD 1.2 billion under a Credit and Guaranty Agreement on November 24, 2021 from a group of lenders. The agreement was for a period of five years with a maturity dated in November 2026 for the term loan under the same. However, GLAS issued a notice of default and sought to accelerate the term loan on March 2023 within 15 months of the Credit Agreement and 3.5 years prior to the maturity date.

(With inputs from agencies)