Byju’s vs BCCI: SC stays NCLAT order that set aside insolvency case against edtech
Supreme Court on Wednesday stayed the National Company Law Appellate Tribunal’s (NCLAT) order, which approved the settlement between edtech firm Byju’s and the Board of Control for Cricket in India (BCCI) over unpaid dues of Rs 158 crore.
Solicitor General Tushar Mehta, appearing for the BCCI, opposed the appeal against the NCLAT order. Mehta said that because of the stay, the BCCI’s settlement with Byju’s will go.
The Supreme Court bench led by Chief Justice of India DY Chandrachud asked BCCI to keep the settlement amount in a separate account till August 23 – the next date of hearing.
The NCLAT order was appealed in the apex court by Glas Trust – the trustee for lenders to which Byju’s owes $1.2 billion. Opposing the edtech firm’s settlement with BCCI, Glas Trust had alleged that the money being paid to the cricketing authority by Riju Ravindran – brother of the company’s founder Byju Raveendran – was tainted.
The NCLAT had earlier quashed the bankruptcy proceedings against Byju’s after a settlement was reached between BCCI and the company, as per which Ravindran agreed to pay off the company’s dues from his personal funds. This pertains to money that Byju’s owes BCCI for a sponsorship deal filed between the two parties.
The consortium of lenders had also filed a plea in the Bankruptcy Court of Delaware in the US seeking relief. However, this petition was rejected on the grounds of non-interference with proceedings in another country’s judicial system.
