Crisis-hit Byju’s has partially paid the February salaries of its employees.

The edtech firm said it would pay the balance once it is permitted to use funds from a rights issue.

Earlier this month, founder Byju Raveendran expressed his inability to clear the salaries of February — saying that the start-up is unable to dip into a recently concluded $200 million rights issue because of a legal dispute with some of its investors.

Raveendran had said in a letter to staff that while it successfully closed the rights issue, ``unfortunately, a select few (4 out of our 150 plus investors) have stooped to a heartless level, ensuring that we are unable to utilise the funds raised to pay your hard-earned salaries. At their behest, the amount raised through the rights issue is currently locked in a separate account.’’

However, in its latest communication, the firm said salaries have been disbursed to some of its employees. ``We processed part salaries for everyone for February late at night on Friday to the extent of capital we could get outside the rights issue. The company will pay the balance once the rights issue funds are available, which we expect shortly,’’ it disclosed.

Byju’s said the salaries will be reflected in the employee's accounts by March 11. It pointed out that due to the long weekend and March 9 being the second Saturday, the amount will be credited on Monday. ``We sincerely apologise for any inconvenience caused by this delay and are grateful for your understanding.’’

Amid the dispute being fought in the National Company Law Tribunal (NCLT), Byju's added that it has in the interim made alternate arrangements to ensure that the employees' daily lives are not disrupted.

A Moneycontrol report said Byju's has disbursed full salaries to about 25 per cent of the employees in the lower bracket, with partial payments to the remaining 75 per cent of staff.

The Bangalore bench of the tribunal had said in an interim order on February 27, that funds received by the company from the rights issue should be kept in a separate escrow account, and it should not be withdrawn till the disposal of the matter.

The next hearing has been listed for April 4. The NCLT was hearing a petition filed by some investors of the start-up who alleged that the rights issue was illegal and contrary to law.

Last month, a section of Byju's shareholders voted in favour of removing Raveendran and his family from the board over alleged "mismanagement and failures".