Supreme Court sets aside NCLAT order stopping insolvency proceedings against Byju’s
In a major setback to Byju’s, the Supreme Court on Wednesday set aside the National Company Law Appellate Tribunal’s (NCLAT’s) verdict that had halted the insolvency proceedings against the embattled ed-tech firm and held US creditor firm Glas Trust Company LLC would have the locus to intervene.
The top court verdict also came as a jolt for the Board of Control for Cricket in India (BCCI) as it annulled the NCLAT’s order approving Rs 158.9 crore dues settlement of Byju’s with the cricket board.
A bench comprising Chief Justice of India (CJI) D Y Chandrachud and Justices JB Pardiwala and Manoj Misra directed the cricket board to deposit the settlement amount of Rs 158.9 crore with the committee of creditors (CoC).
As a result of the verdict, now Byju Raveendran and his brother Riju Raveendran will again lose control over “Think and Learn Pvt Ltd” or Byju’s — a company engaged in providing online educational services and the insolvency resolution professional (IRP) will be back at the helm.
The Bench held that the US firm, being the creditor, had the locus to intervene in matters relating to the corporate insolvency proceedings at NCLT, NCLAT and in the apex court as an affected party.
