- The Supreme Court of India has stayed the NCLAT's order that allowed the settlement of ₹158.9 crore between Byju's and the BCCI.
- The ₹158 crore paid by Byju's to the BCCI will be kept in a separate escrow account until the next hearing on August 23.
In a significant legal development, the Supreme Court of India has stayed the National Company Law Appellate Tribunal's (NCLAT) order allowing the settlement of ₹158.9 crore dues between edtech giant Byju's and the Board of Control for Cricket in India (BCCI).
This ruling also suspends the previous NCLAT decision that halted insolvency proceedings against Byju's parent company, Think and Learn Pvt Ltd.
The bench, led by Chief Justice D.Y. Chandrachud, directed that the ₹158 crore paid by Byju's to the BCCI be placed in a separate escrow account until the next hearing, scheduled for August 23.
"Pending further orders, there shall be a stay on the order. In the meantime, BCCI shall maintain ₹158 crores realized as settlement in a separate account," stated the CJI.
The Supreme Court's order follows a plea by Glas Trust Company LLC, a U.S.-based creditor of Byju's, which argued that the funds used for the settlement were "tainted" and allegedly stolen from the lenders.
Senior advocate Mukul Rohatgi, representing the lenders, criticized the settlement, stating, "We are left with nothing. These two Raveendrans have voluntarily gone for insolvency in the US. There is nothing on record to show that they have any money."
Earlier, the NCLAT had approved the settlement on August 2, effectively ending bankruptcy proceedings against Think and Learn and restoring control to Byju Raveendran, the company’s founder. The consortium of lenders has also pursued legal action in the U.S. Bankruptcy Court of Delaware, seeking to prevent Riju Raveendran from repaying the BCCI. However, their plea was rejected due to non-interference with another country’s judicial process.
This legal battle is the latest in a series of challenges faced by Byju's, which has been beset by financial difficulties, boardroom exits, and disputes with foreign investors.
Edited by Harshajit Sarmah
