NCLT freezes Byju’s asset sale after K3 claims ₹150 crore goods sold for ₹16 crore

The Bengaluru Bench of the National Company Law Tribunal (NCLT) has ordered a freeze on the disposal of assets sold in an August auction involving Think and Learn Private Limited (TLPL), the parent company of Byju’s, which is undergoing a corporate insolvency resolution process.

The tribunal has directed TLPL’s Resolution Professional (RP) and the auction buyer, Comprint Tech Solutions (I) Private Limited, to maintain status quo on the assets after being told that articles worth around ₹150 crore had been auctioned for about ₹16 crore.

Under the August 31 order, the disputed articles, equipment and other assets covered by the August 2, 2026 auction notice must be preserved in their existing condition until the next hearing on September 21. The case centres on questions over the ownership of the assets and whether they could have been sold as part of TLPL’s insolvency proceedings.

The application was filed by the Shailendra Ajmera, RP of TLPL, with the suspended directors supporting the plea. The applicant has challenged the auction, alleging that assets belonging to K3 Education were included in the sale and that goods estimated to be worth around ₹150 crore were sold for a fraction of their claimed value.

Ownership under question

The Tribunal said there was still uncertainty over ownership. “Even if part of the auctioned articles actually belonged to TLPL, the ownership of rest of the articles remains in haze,” the Bench observed, saying the assets needed to be preserved until there was clearer evidence.

The Bench, comprising Judicial Member Sunil Kumar Aggarwal and Technical Member Radhakrishna Sreepada, also made Comprint, the successful bidder in the August 14 auction, a respondent in the proceedings.

Comprint has been directed to submit a detailed inventory of the assets it purchased, along with the address where they are being stored and photographs, within one week of being served with the application and the Tribunal’s order. A copy of the submission must also be provided to the applicant’s counsel.

The applicant also raised concerns over the manner in which the auction was conducted. Senior Advocate Joy Saha, appearing for the suspended directors, questioned how the sale could have been completed within four days. He argued that Regulation 29 of the insolvency regulations requires an RP to record a reasoned finding that a sale is necessary for better realisation of value before disposing of assets.

The applicant further relied on Section 18(1)(f) of the Insolvency and Bankruptcy Code, arguing that an RP can take control of assets owned by the corporate debtor, while third-party assets are excluded.

The NCLT has not yet ruled on the ownership of the disputed assets or the validity of the auction. Its latest order only requires the assets to be preserved until the matter is considered further.

The direction follows a Karnataka High Court order dated August 28 that cleared the way for the application. The matter will next be heard by the Bengaluru Bench on September 21.

Byju’s insolvency battle

The order adds to the legal and financial challenges facing Byju Raveendran and the Byju’s group as its insolvency proceedings continue. Lenders are seeking recovery of dues linked to a $1.2 billion US term loan, while Raveendran is also facing legal proceedings in India and overseas.

In May 2026, a Singapore court sentenced Raveendran to six months in jail for contempt over non-compliance with asset disclosure orders. More recently, he proposed relinquishing his beneficial interest in 17.89 million Aakash shares as part of a settlement involving a $235 million arbitration claim by Qatar Holding.