The National Company Law Appeals Tribunal (NCLAT) moved to dismiss Byju’s insolvency proceedings. The edtech giant received approval for the Rs 158.9 crore dues settlement with the Board of Control for Cricket in India (BCCI). On Thursday, the Supreme Court reserved its decision on a US company’s appeal against this action.
This occurs one day after Byju’s was questioned by a three-judge bench led by Chief Justice of India DY Chandrachud about why it decided to settle a debt with the BCCI when it had 15,000 crore debt.
During today’s hearing, the bench requested that the interim resolution professional (IRP) preserve the status quo and not hold any committee of creditors meetings until the Supreme Court issues its final ruling on the matter.
On Wednesday, the Chief Justice had said, “The company (Byju’s) is in debt of Rs 15,000 crore. When the quantum of the debt is so large, can one creditor (BCCI) walk away saying one promoter is ready to pay me?” “Why pick up BCCI and settle with them only from your personal assets? The NCLAT accepts all this without applying its mind to it.”
The court also hinted that it might remand the case for additional consideration. For Byju’s, the August 2 NCLAT ruling was a great relief as it put back founder Riju Raveendran’s in control.
However, on August 14, the Supreme Court declared the decision to be “unconscionable” and halted the ed-tech company’s operations. Meanwhile, notices were sent to Byju’s and other parties regarding the appeal of the US-based creditor Glas Trust Company LLC against the tribunal’s judgment.
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