Introduction:

In a significant development concerning the insolvency proceedings of Think and Learn Private Limited, the parent company of edtech giant Byju’s, the Karnataka High Court has directed the current Resolution Professional (RP) to preserve all emails and communications among stakeholders pertinent to the Corporate Insolvency Resolution Process (CIRP). This interim order was issued by Justice M. Nagaprasanna on April 11, 2025, in response to a petition filed by Byju Raveendran, the founder of Byju’s. The court emphasized the necessity of maintaining these communications to ensure transparency and integrity in the ongoing insolvency process.

Arguments:

For the Petitioner (Byju Raveendran):

Represented by counsel Shyam Mohan, the petitioner argued that the preservation of emails and communications is crucial for a fair and comprehensive investigation into the insolvency proceedings. It was highlighted that the previous RP, Pankaj Srivastava, had admitted in an affidavit before the Insolvency and Bankruptcy Board of India (IBBI) that approximately 2,392 emails were deleted due to folder rearrangements. The petitioner expressed concerns that such deletions could compromise the integrity of the CIRP and impede potential investigations into the matter. Therefore, a directive for the current RP to preserve all relevant communications was sought to prevent further loss of critical information.

For the Respondents:

Senior Advocate Uday Holla, representing Glas Trust Company LLC, a respondent in the case, stated that there was no objection to the preservation of emails by the current RP. This position underscored a consensus on the importance of maintaining comprehensive records to facilitate a transparent insolvency process.

Court’s Judgment:

After considering the arguments, Justice M. Nagaprasanna issued an interim order directing the current RP (referred to as R5) to preserve all emails and communications among stakeholders relevant to the CIRP or any potential investigations. The court acknowledged the petitioner’s concerns regarding the deletion of emails and emphasized the necessity of preserving such communications to ensure a fair and thorough insolvency process.

However, the court rejected other prayers made in the petition, including directives to freeze the CIRP proceedings and to recover and restore data deleted from the email account “ip.byjus@outlook.com.” The bench clarified that challenges to proceedings, such as the minutes of the Committee of Creditors (CoC) meetings, should be addressed before the National Company Law Tribunal (NCLT) or the National Company Law Appellate Tribunal (NCLAT), as appropriate. Consequently, those prayers were deemed beyond the purview of the High Court and were dismissed.

The court scheduled the next hearing for April 21, 2025, to further deliberate on the matter.