The Supreme Court on Monday upheld the National Company Law Appellate Tribunal’s (NCLAT) order rejecting the appeals filed by the Board of Control for Cricket in India (BCCI) and Byju’s co-founder Riju Raveendran seeking withdrawal of insolvency proceedings initiated against the embattled edtech company.
A bench comprising Justices J.B. Pardiwala and R. Mahadevan dismissed the joint appeals challenging the April 17 decision of the Chennai bench of NCLAT, which had affirmed the order passed by the National Company Law Tribunal (NCLT) in Bengaluru. The NCLT had on February 10 directed that the settlement proposal submitted by BCCI and Raveendran be placed before the newly constituted Committee of Creditors (CoC) of Byju’s parent entity, Think & Learn Pvt Ltd.
At the heart of the dispute was whether the withdrawal application for insolvency under Section 12A of the Insolvency and Bankruptcy Code (IBC) was filed before or after the formation of the CoC. Section 12A provides that withdrawal of insolvency requires the consent of 90% of the CoC if filed after the committee’s constitution. BCCI and Raveendran had argued that the application — submitted via Form FA — was made before the CoC’s formation and thus did not require such approval, invoking Regulation 30A(1)(a) of the IBBI regulations.
However, the NCLAT noted that Form FA was submitted on November 14, 2024 — after the CoC was formed — making the application subject to the requirements of Section 12A and Regulation 30A(1)(b), thereby necessitating 90% creditor approval. The tribunal rejected the claim that the delay was caused by the Interim Resolution Professional (IRP), holding that the statutory timelines had already lapsed.
The Corporate Insolvency Resolution Process (CIRP) against Byju’s was triggered on July 16, 2024, based on BCCI’s Rs 158.9 crore operational creditor claim arising out of a 2019 team sponsorship deal. A settlement between the two parties was later reached, prompting Raveendran to seek withdrawal of the insolvency proceedings.
Initially, the NCLAT had allowed the withdrawal and set aside the CIRP on August 2, 2024. However, Glas Trust — a U.S.-based trustee for lenders to whom Byju’s owes over $1.2 billion — challenged this before the Supreme Court. On October 23, 2024, the apex court overturned the NCLAT order and reinstated CIRP, directing BCCI to move the NCLT afresh with its settlement.
The case underscores the complex creditor landscape facing Byju’s, with Glas Trust pursuing a separate insolvency plea before the NCLT over a USD 984.3 million claim.
With today’s ruling, the Supreme Court has reaffirmed the principle that any attempt to withdraw insolvency proceedings after the formation of CoC must comply with the mandatory consent mechanism, closing the door on BCCI and Raveendran’s attempt to bypass the statutory procedure.
