Edutech company Byju has suffered a major setback. In fact, the Supreme Court on Wednesday rejected the decision of the National Company Law Appellate Tribunal (NCLAT) in which it had stayed the bankruptcy proceedings against the troubled Byju. A bench of Chief Justice DY Chandrachud, Justice JB Pardiwala and Justice Manoj Mishra also overturned the NCLAT order which had cleared Byju’s payment of Rs 158.9 crore dues with the Board of Control for Cricket in India (BCCI). The court directed the cricket board to deposit the settlement amount of Rs 158.9 crore with the committee of lenders.
American company’s petition
The bench gave its verdict on the petition of American company Glass Trust Company LLC against the NCLAT order. The court said that NCLAT did not exercise discretion while closing the insolvency proceedings against Byju and ordered a fresh decision in the case.
Approval was given on August 2
Let us inform that on August 2, NCLAT had ordered closure of insolvency proceedings against Byju after approving the settlement of outstanding dues of Rs 158.9 crore with the Board of Control for Cricket in India (BCCI). The decision came as a major relief to Byju’s, as it effectively brought its founder Byju Raveendran back to the controlling position. However, this relief was short-lived as in a blow to Byju, the apex court had stayed the NCLAT decision on August 14. The case pertains to Byju’s default in payment of Rs 158.9 crore related to a sponsorship deal with BCCI.
What did Byju Raveendran say
Recently, Byju’s founder Byju Raveendran had said that if the lenders are ready to work with him, then he is ready to return the entire money to him. According to Raveendran, if the insolvency proceedings against the company continue, the lenders will not get any money.
