Supreme Court stays NCLAT order that set aside insolvency case against Byju’s

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 Supreme Court stayed National Company Law Appellate Tribunal’s (NCLAT) order that approved the settlement between Byju’s and the Board of Control for Cricket in India (BCCI) over unpaid dues of ₹158 crore. Appearing for the BCCI Solicitor General Tushar Mehta opposed the appeal against the NCLAT order saying that because of the stay, the BCCI’s settlement with Byju’s will go.

Byju Raveendran, founder of edtech firm Byju’s.

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 which is the next date of the hearing. 

Glas Trust – the trustee for lenders to which Byju’s owes $1.2 billion appealed against the NCLAT order in the Supreme Court as it alleged that the money being paid to the cricketing authority by Riju Ravindran- brother of the company’s founder Byju Raveendran- was tainted.

Earlier, the NCLAT quashed bankruptcy proceedings against Byju’s after a settlement was reached between BCCI and the company according to which Byju Ravindran agreed to pay off the company’s dues from his personal funds.

The consortium of lenders also filed a plea in the Bankruptcy Court of Delaware in the US but the petition was rejected on the grounds of non-interference with proceedings in another country’s judicial system.