The National Company Law Tribunal (NCLT), New Delhi, on Friday issued notice to FIITJEE Limited on a corporate insolvency plea filed by its former employee Vinod Kumar Agarwal, who has claimed unpaid dues of over ₹2.6 crore..A Bench of NCLT comprising Mahendra Khandelwal (Judicial Member) and Subrata Kumar Dash (Technical Member) heard the matter and directed FIITJEE to file its response. The case has been posted for further hearing on July 10, 2025.Agarwal, who held a senior position at FIITJEE, has approached the tribunal under Section 9 of the Insolvency and Bankruptcy Code, 2016, as an operational creditor. According to him, the company failed to clear his dues from FY 2023-24 and 2024-25 despite repeated demands. He was thus constrained to file the plea. Though FIITJEE claimed Agarwal was a Key Managerial Personnel (KMP), he denied the same in the NCLT. The tribunal is now expected to analyse if there was a pre-existing dispute between FIITJEE and Agarwal in order to ascertain the maintainability of the plea. .FIITJEE, a pioneer in India’s competitive exam coaching space since its founding in 1992, is best known for preparing students for the IIT-JEE and other engineering entrance exams. For years, it commanded significant market share in offline test prep, operating through a network of centres across the country.However, in recent years, FIITJEE has been grappling with a range of financial and operational challenges:Post-COVID Business Model Disruption: The pandemic significantly impacted its classroom-based coaching model. Although FIITJEE attempted to pivot online, it lagged behind newer, tech-first competitors like BYJU’S, Unacademy, and Vedantu, who rapidly scaled digital offerings.Decline in Market Share: Students increasingly opted for online, flexible, and often more affordable alternatives, leading to a decline in enrolments and revenues for traditional players like FIITJEE.Operational Costs and Staff Departures: Reports over the past few years suggest mounting operational expenses, coupled with employee exits and restructuring efforts, including closure or downsizing of some centers. Delayed salaries and unsettled dues have also reportedly been a source of discontent among former employees..Sources close to development told Bar & Bench that FIITJEE is expected to face at least three more insolvency pleas over unpaid salaries. .Agarwal was represented by Advocate Praphull Chandan Jha
The National Company Law Tribunal (NCLT), New Delhi, on Friday issued notice to FIITJEE Limited on a corporate insolvency plea filed by its former employee Vinod Kumar Agarwal, who has claimed unpaid dues of over ₹2.6 crore..A Bench of NCLT comprising Mahendra Khandelwal (Judicial Member) and Subrata Kumar Dash (Technical Member) heard the matter and directed FIITJEE to file its response. The case has been posted for further hearing on July 10, 2025.Agarwal, who held a senior position at FIITJEE, has approached the tribunal under Section 9 of the Insolvency and Bankruptcy Code, 2016, as an operational creditor. According to him, the company failed to clear his dues from FY 2023-24 and 2024-25 despite repeated demands. He was thus constrained to file the plea. Though FIITJEE claimed Agarwal was a Key Managerial Personnel (KMP), he denied the same in the NCLT. The tribunal is now expected to analyse if there was a pre-existing dispute between FIITJEE and Agarwal in order to ascertain the maintainability of the plea. .FIITJEE, a pioneer in India’s competitive exam coaching space since its founding in 1992, is best known for preparing students for the IIT-JEE and other engineering entrance exams. For years, it commanded significant market share in offline test prep, operating through a network of centres across the country.However, in recent years, FIITJEE has been grappling with a range of financial and operational challenges:Post-COVID Business Model Disruption: The pandemic significantly impacted its classroom-based coaching model. Although FIITJEE attempted to pivot online, it lagged behind newer, tech-first competitors like BYJU’S, Unacademy, and Vedantu, who rapidly scaled digital offerings.Decline in Market Share: Students increasingly opted for online, flexible, and often more affordable alternatives, leading to a decline in enrolments and revenues for traditional players like FIITJEE.Operational Costs and Staff Departures: Reports over the past few years suggest mounting operational expenses, coupled with employee exits and restructuring efforts, including closure or downsizing of some centers. Delayed salaries and unsettled dues have also reportedly been a source of discontent among former employees..Sources close to development told Bar & Bench that FIITJEE is expected to face at least three more insolvency pleas over unpaid salaries. .Agarwal was represented by Advocate Praphull Chandan Jha
