The Supreme Court announced it will hear the appeal concerning insolvency proceedings against the educational technology company BYJU’s on September 17. The appeal, brought forward by US-based creditor Glas Trust Company LLC, challenges a decision by the National Company Law Appellate Tribunal (NCLAT) that halted proceedings and sanctioned a settlement of dues amounting to Rs 158.9 crore with the Board of Control for Cricket in India (BCCI).
The bench, led by Chief Justice D Y Chandrachud and comprising Justices J B Pardiwala and Manoj Misra, responded to urgent pleas for a speedy review of the case, as significant developments have unfolded. The appeal was first mentioned by senior advocate NK Kaul, representing BYJU’s, supported by Solicitor General Tushar Mehta for the BCCI and senior lawyer Abhishek Singhvi also representing the ed-tech firm.
The urgency of the case was underscored by the request to either advance the hearing or consolidate it with another related plea scheduled for the same day. “We will hear both the pleas on September 17,” Chief Justice Chandrachud declared.
The legal battle traces back to BYJU’s default on a Rs 158.9 crore payment under a sponsorship agreement with the BCCI, leading to initial insolvency proceedings by the Bengaluru bench of the National Company Law Tribunal (NCLT) in July. The NCLT had admitted BYJU’s parent company, Think and Learn, to the insolvency resolution process, appointing an interim resolution professional and suspending the company’s board.
However, the situation took a turn when the NCLAT approved a dues settlement with the BCCI on August 2, effectively reinstating BYJU’s founder Byju Raveendran in control and setting aside the insolvency proceedings. The Supreme Court, however, stayed this verdict shortly after, citing concerns over the nature of the NCLAT’s decision and the management of the settlement funds.
