Kerala High Court Dismisses Plea Seeking CBI, ED, NIA Probe Into Alleged Byju's Insolvency Irregularities

The Kerala High Court has recently dismissed a plea seeking a court-monitored investigation by the Central Bureau of Investigation (CBI), Enforcement Directorate (ED), and National Investigation Agency (NIA) into allegations connected with the corporate insolvency resolution process of Think and Learn Private Limited (BYJU'S).

Justice G. Girish observed that the plea was not maintainable because an earlier Public Interest Litigation seeking the same reliefs on the same cause of action had been withdrawn without liberty to institute fresh proceedings.

The Court observed,“The institution of this writ petition by the petitioners violates the doctrine of finality envisaged in the maxim 'interest reipublicae ut sit finis litium' as held by the Hon'ble Supreme Court in Kangra Central Co-operative Bank Limited v. The Kangra Central Co-operative Bank Pensioners Welfare Association & Ors.”

The plea was filed by Voizzit Technology Pvt Ltd and Voizzit Information Technology LLC.

The companies claimed that they had acquired ownership of Epic Creations Inc. and Tangible Play Inc., entities associated with the BYJU'S group, through a loan assignment and conversion transaction involving Riju Raveendran. They also contended that a Dubai court had acknowledged their ownership of the entities and related assets.

The companies further contended that they had instituted a commercial suit before the Commercial Court, Ernakulam seeking a declaration of ownership and related reliefs

According to the petition, complaints had been filed before the ED and the CBI alleging FEMA violations, cross-border fraud, criminal conspiracy and abuse of insolvency processes. The petitioners sought directions for investigation against GLAS Trust Company LLC, Ernst and Young LLP, the insolvency professionals connected with the CIRP and other connected persons.

The respondents, including the resolution professional and other stakeholders, challenged the maintainability of the plea. They contended that the petitioners had earlier filed a PIL on the same factual matrix. They further contended that the earlier PIL sought identical reliefs and had been withdrawn on January 13, 2026 without liberty to institute fresh proceedings.

Accepting the objection, the Court observed that the earlier PIL and the present petition arose from the same factual matrix and sought identical reliefs.

The Court further observed that the petitioners had made an incorrect statement in the affidavit filed in support of the writ petition.

The Court observed, “In this context, it is worth to note that the petitioners made a misrepresentation in paragraph No.3 of the affidavit filed in support of this writ petition that they have not filed any petition earlier seeking same or similar reliefs as sought for in this case. The aforesaid statement of the petitioners in that affidavit is factually incorrect in view of the pendency of W.P.(PIL) No.171/2025 which had been finally disposed of by a Division Bench of this Court on 13.01.2026.”

The respondents also contended that Kerala was not the proper forum for the dispute. They pointed out that the FIR relied upon by the petitioners had been registered at High Grounds Police Station, Bengaluru. They further submitted that the proceedings sought to be interfered with were pending before the NCLT, Bengaluru.

Accepting the contention, the court observed:

“It is apparent from the facts and circumstances of the case that the petitioners have preferred the wrong forum for the institution of this writ petition. Therefore, the challenge raised by the above respondents against the maintainability of this writ petition, is perfectly sustainable.”

Accordingly, the Court dismissed the writ petition.

For Petitioners: Advocates V.R Manoranjan (Muvattupuzha), Abdul Raoof Pallipath, Aysha Abraham, K. Rajeswary, Anil Prabha K, Aleena Anabelli A

For Respondents: Senior Advocate Joseph Kodianthara, S Sreekumar, Santhosh Mohan, Advocates Sreelal N Warrier, Spl Public Prosecutor, O.M Shalina, Deputy Solicitor General of India, Jaishankar V Nair, Standing Counsel, ED, B Ananathu, Cyriac Tom, Aamir Sohrab M.M and Harikumar G Nair