The Court had issued notice to Byju Raveendran, his company Think and Learn Private Limited and the BCCI.
| Photo Credit: ANI

The Supreme Court on Thursday (August 22, 2024) did not heed repeated requests by debt-ridden ed-tech firm Byju’s and the Board of Control for Cricket in India (BCCI) to defer the Committee of Creditors (CoC) from meeting.

A three-judge Bench headed by Chief Justice of India D.Y. Chandrachud had, on August 14, stayed the operation of a National Company Law Appellate Tribunal (NCLAT) decision allowing Byju’s to pay a settlement amount of ₹158 crore to the BCCI.

Also Read: How India’s Byju’s went from startup star to facing insolvency

The order followed an appeal filed by U.S.-based lender Glas Trust Company Limited liability company (LLC), a financial creditor — which said it had a claim of ₹8,500 crore over the ed-tech firm.

On August 22, the Bench gave Glas Company, represented by senior advocate Shyam Divan, time to respond to an affidavit filed by the opposite party.

Senior advocate A.M. Singhvi, for Byju’s, said the court must “balance equities” on its side too. Solicitor General Tushar Mehta, for BCCI, said “98% of the CoC was Mr. Divan’s client”.

Mr. Divan said his client had not constituted a CoC. Senior advocate Kapil Sibal, who joined the hearing on the side of Mr. Divan, said the stay order on August 14 was itself a result of the court’s prima facie findings leaning in favour of Glas.

The NCLAT decision on August 2 allowing the settlement, was based on the reasoning that BCCI would not accept any tainted money. The amount of ₹158 crore was offered by Riju Raveendran, Byju’s brother. It was generated in India, for which income tax was paid. The money was received through banking channels.

Glas had argued that the “drill of the law” was not followed in the settlement between Byju’s and the BCCI. The U.S. lender had said, as a major financial creditor, it should have gotten priority in repayments. Mr. Singhvi had described Glas’s appeal as a show of ego.

“Apart from an ego, he (Glas) has a claim of ₹8,500 crore,” the Chief Justice reacted.

The Court had issued notice to Byju Raveendran, his company Think and Learn Private Limited and the BCCI.

Representational image of the Byju’s logo
| Photo Credit: Reuters

The Supreme Court on Wednesday (August 14, 2024) revived insolvency proceedings against Byju’s by putting a previous tribunal order on hold, in a victory for U.S. lenders that say they are owed $1 billion by the education technology company.

The Supreme Court order is a setback to company founder Byju Raveendran who earlier this month regained control of the startup that was once India’s most valuable at $22 billion.

ALSO READ: How Byju’s went from startup star to facing insolvency

Byju’s did not immediately respond to a request to comment on the court order.

The company was undergoing insolvency proceedings following a complaint by the BCCI which said it was not paid sponsorship dues. The two sides subsequently settled the dispute and an appeals tribunal halted the insolvency proceedings.

A revival of the proceedings will put control of the company back in the hands of a court-appointed insolvency administrator.

The Supreme Court on Wednesday agreed to hear an appeal by U.S.-based Glas Trust, which represents some lenders of a Byju’s group company, putting on hold the earlier order that had quashed insolvency proceedings against Byju’s.