In a pivotal legal confrontation, US-based Glas Trust Company LLC, represented by senior advocate Kapil Sibal, presented its grievances to the Supreme Court on Tuesday, arguing against its removal from the committee of creditors (CoC) by the interim resolution professional (IRP) handling the insolvency proceedings of Indian ed-tech giant Byju’s.
During the proceedings before a bench led by Chief Justice D Y Chandrachud, including Justices JB Pardiwala and Manoj Misra, Sibal articulated the significant financial stakes his client held in Byju’s, amounting to approximately Rs 12,000 crore, which he claimed were unjustly diminished to nothing by the actions of the IRP. The bench commenced the hearing of this complex case, set to continue on Wednesday.
Glas Trust Company’s contention revolves around the National Company Law Appellate Tribunal’s (NCLAT) recent decision, which sided with an earlier ruling staying the insolvency proceedings against Byju’s and acknowledging its dues settlement with the Board of Control for Cricket in India (BCCI) involving Rs 158.9 crore. This settlement, and the manner in which the insolvency process has been managed, has been a contentious issue, especially with the creditor’s massive financial involvement being seemingly disregarded.
The firm has also faced setbacks previously when the Supreme Court, on August 22, declined to pass an interim directive to prevent the CoC from convening, indicating the high stakes and legal complexities involved. The current proceedings in the Supreme Court will further delve into the legality and fairness of excluding Glas Trust from the decision-making process in the ongoing insolvency saga.
This legal battle not only underscores the intricate interplay of national and international financial interests in India’s burgeoning corporate landscape but also sets a significant precedent on the role and rights of foreign creditors in domestic insolvency proceedings.
