The Supreme Court has refused to give an interim order to the Committee of Creditors (CoC) not to hold any meeting to continue the insolvency proceedings against the financially troubled edutech company Byju’s. However, a bench of Chief Justice DY Chandrachud, Justice JB Pardiwala and Justice Manoj Mishra said that it will hold the final hearing in the matter on August 27.
what did the bench say
The bench said it can ignore developments till the next hearing if it finds that the appeal filed by US lender Glass Trust Company against the National Company Law Appellate Tribunal (NCLAT) order has no merit.
What is the argument of Byju’s lawyer
Senior advocate Abhishek Singhvi, appearing for Byju’s, and Solicitor General Tushar Mehta, representing the Board of Control for Cricket in India (BCCI), said the CoC was constituted a day ago and 98 per cent stake was held by the US company.
Shock on August 14
In a setback to Think and Learn, the parent company that operates Byju’s, the apex court had on August 14 stayed the NCLAT order setting aside the insolvency proceedings against the edutech company and approving settlement of Rs 158.9 crore dues with the Board of Control for Cricket in India.
Earlier, the appellate tribunal’s decision on August 2 brought great relief to Byju’s as it effectively restored control to founder Byju Ravindran. However, the apex court stayed the NCLAT decision, terming it prima facie unfair.
what is the matter
The case is related to Byju’s default in payment of Rs 158.9 crore related to a sponsorship deal with the BCCI. The apex court had directed the BCCI to keep the amount of Rs 158 crore received from Byju’s after the agreement in a separate escrow account till further orders. Byju’s had entered into a ‘Team Sponsor Agreement’ with the BCCI in 2019. The company fulfilled its obligations till mid-2022, but defaulted on subsequent payments of Rs 158.9 crore.