The Karnataka High Court on Friday deferred the hearing on a plea by Byju Raveendran, seeking a stay on the insolvency proceedings and the formation of the Committee of Creditors (CoC) until the National Company Law Appellate Tribunal (NCLAT) decides on its appeal.
This appeal challenges the National Company Law Tribunal (NCLT) order dated July 16. The Karnataka High Court has scheduled the next hearing for July 30.
On Thursday, Raveendran filed a new writ petition with the Karnataka High Court, requesting that the NCLT order be suspended until the NCLAT has made a final decision on the appeal.
This legal action follows the embattled edtech firm’s move on Tuesday when it approached the NCLAT in Chennai to challenge the NCLT’s order. The NCLAT bench has agreed to hear the case on July 29.
This sequence of events began on July 16 when the NCLT in Bengaluru admitted a plea filed by the Board of Control for Cricket in India (BCCI), seeking to initiate a corporate insolvency resolution process for BYJU’S parent company, Think and Learn Pvt Ltd.
One of the first options for the edtech firm was to appeal this decision and appear before the NCLAT within 30 days of the order being issued.
The NCLT is the first instance tribunal for company law matters, while the NCLAT is the appellate body for decisions made by the NCLT.
Meanwhile, the edtech company is also said to be pursuing another option for settlement with the BCCI.
BCCI is pursuing a claim for a total outstanding amount of Rs 158.90 crore from BYJU’S, not including deducted taxes and applicable interest. The case against BYJU’S parent company, filed in September last year and officially registered in November, underwent multiple hearings at the NCLT.
The corporate insolvency resolution process is a legal process under the Insolvency and Bankruptcy Code (IBC), 2016, aimed at resolving insolvency issues faced by corporate debtors in a time-bound manner, typically through restructuring or liquidation.
The NCLT bench has appointed Pankaj Srivastava as an interim resolution professional (IRP) to carry out the functions mentioned under the IBC. The IRP will carry out the functions as contemplated by Section 15,17,18,19,20,21 of the IBC.
The duties of the IRP under the above-mentioned sections of the IBC include managing the company’s affairs, overseeing its operations and assets, compiling a list of creditors, forming a CoC, conducting CoC meetings, and providing financial updates to facilitate decisions during the insolvency resolution process.
