In a win for BYJU’S’ lenders, the Supreme Court of India has issued an interim order staying the National Company Law Appellate Tribunal’s (NCLAT) decision that had allowed a settlement between the edtech company and the Board of Control for Cricket in India (BCCI) regarding outstanding dues of approximately Rs 158.9 crore.
The apex court has effectively put the insolvency proceedings against BYJU’S back on the table, reversing the NCLAT’s earlier verdict that had set them aside.
Meanwhile, Chief Justice DY Chandrachud, who headed the three-judge bench, directed that the amount paid by BYJU’S to the BCCI be held in a separate escrow account pending further review, according to Bar and Bench.
The top court’s order comes in response to an appeal filed by the US-based Glas Trust Company LLC, representing some of BYJU’S creditors, challenging the NCLAT’s approval for the settlement.
Glas Trust has opposed the Rs 158.9 crore dues settlement with the BCCI, alleging the money paid by Riju Raveendran (brother of BYJU’S chief Byju Raveendran) was “tainted” and was a case of “round-tripping”.
On July 16, 2024, the National Company Law Tribunal (NCLT) admitted a petition filed by the cricket board to initiate a Corporate Insolvency Resolution Process (CIRP) against Think and Learn Pvt Ltd, the parent company of BYJU’S.
The NCLT’s order acknowledged that the debt and default by BYJU’S were established, thus warranting the commencement of CIRP under Section 9 of the Insolvency and Bankruptcy Code (IBC), 2016.
(More details to follow.)
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