The Supreme Court on Wednesday imposed a stay on a recent National Company Law Appellate Tribunal (NCLAT) verdict that had approved a significant dues settlement involving edtech giant Byju’s and the Board of Control for Cricket in India (BCCI). The decision also halts the associated order that had dismissed insolvency proceedings against Byju’s.
Chief Justice D.Y. Chandrachud, along with Justices J.B. Pardiwala and Manoj Misra, presided over the session, issuing a directive for BCCI to segregate and maintain the Rs 158.9 crore received from Byju’s in a distinct account pending further examination.
The apex court’s intervention follows a petition from Glas Trust Company LLC, a US-based creditor, challenging the NCLAT’s verdict. This move by the Supreme Court seeks to scrutinize the settlement and the procedural aspects surrounding the insolvency cancellation which had previously positioned Byju Raveendran to regain control over the company.
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On August 2, the NCLAT had endorsed the settlement of dues amounting to Rs 158.9 crore with BCCI, concurrently annulling the insolvency proceedings that had been initiated against Byju’s.
