The National Company Law Appellate Tribunal (NCLAT) on Wednesday reportedly postponed its decision on approving the settlement of Rs 158 crore between BYJU’S and the Board of Control for Cricket in India (BCCI) amid allegations raised by BYJU’S’ US-based lenders.
This development came after lawyers representing BYJU’S and BCCI informed the NCLAT that they had reached an agreement to settle their dispute over the unpaid dues, Moneycontrol reported.
The Bengaluru-based edtech company has already paid Rs 50 crore to the cricket board and will settle the remaining amount in two instalments on August 2 and August 9.
However, the payment to the BCCI will be made by Riju Ravindran, Byju Raveendran’s brother and one of the major shareholders of the edtech company.
The lawyer representing BYJU’S US-based lenders expressed concerns and urged the NCLAT not to accept the settlement. The legal representative argued that the funds being used for the payment came from “stolen money,” specifically referring to the disputed $500 million between the two parties.
As a result, Raveendran has been instructed to submit an undertaking proving that the source of the funds is legitimate and that no court orders were violated in obtaining the money.
The NCLAT has directed the lenders not to form the Committee of Creditors until August 1, when the case is scheduled for its next hearing.
This sequence of events began on July 16 when the National Company Law Tribunal (NCLT) in Bengaluru admitted a plea filed by the BCCI, seeking to initiate a corporate insolvency resolution process for BYJU’S parent company, Think and Learn Pvt Ltd.
The NCLT is the first instance tribunal for company law matters, while the NCLAT is the appellate body for decisions made by the NCLT.
