JOBS-CAREER
In a major setback for Byju’s, the Supreme Court on Wednesday stayed the National Company Law Appellate Tribunal’s order, which had set aside the insolvency proceedings against the edtech firm. The NCLAT order had approved its Rs 158 crore dues settlement with the Board of Control for Cricket in India (BCCI). The order on August 2 had come as a huge relief for Byju’s as it had effectively put its founder Byju Raveendran back in control. However, the SC on Wednesday prima facie termed the NCLAT verdict as “unconscionable” and stayed its operation while issuing notices to Byju’s and others. The stay order was granted on the appeal of Byju’s US-based creditor Glas Trust Company LLC. The SC directed the BCCI to keep Rs 158 crore it had received from Byju’s after a settlement in a separate escrow account till further orders. The bench did not agree to the submission of Solicitor General Tushar Mehta, appearing for the BCCI, that the NCLAT order be not stayed without hearing the cricket board. It also did not agree with the submission of senior advocate Abhshek Singhvi, who represented Byju’s, that the NCLAT order be not stayed without hearing the Byju’s. It, however, concurred with the contention of senior advocate Shyam Divan, representing the US-based lender, that the NCLAT verdict deserved to be stayed. Singhvi said a stay will lead to revival of the committee of creditors (CoC) which was set up following the institution of insolvency proceedings against Byju’s. On July 16, the Bengaluru bench of the National Company Law Tribunal had admitted Think and Learn, Byju’s parent company, to the insolvency resolution process on a plea filed by the BCCI over default in payment of outstanding dues of almost Rs 158 crore. The matter is scheduled to be heard on August 23. Byju’s US-based lender Glas Trust had objected to the payment settlement between BCCI and Byju’s, saying the Rs 158 crore that the latter agreed to pay to the former was tainted and stolen from them. Riju Raveendran, Byju’s brother and shareholder, agreed to clear the dues from his personal funds, which were generated from the sale of Think and Learn’s shares between 2015 and 2022. “We are left with nothing, these two Raveendrans have voluntarily gone for insolvency in the US. There is nothing on record to show that they have any money . It can’t be that there (US) you are a defaulter and here you come to India and say I’ll pay,” senior advocate Mukul Rohatgi, who appeared for the lenders had said. The consortium of lenders had also filed a plea in the Bankruptcy Court of Delaware in the US to block Riju Raveendran from repaying BCCI, arguing that the money should go to them instead. However, the plea was rejected on the grounds of non-interference with proceedings in another country’s judicial system. None
What’s New
Spotlight
Advertisement
Featured News
Latest From This Week
Popular News
