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| Photo Credit: Reuters

In a major relief to Byju’s, the NCLAT on August 2 set aside insolvency proceedings against the troubled edtech major over a sponsorship deal and approved a ₹158 crore settlement with the Board of Control for Cricket in India.

The National Company Law Appellate Tribunal (NCLAT), however, passed the order with a caveat that any failure to make payments on the specific dates mentioned in the undertaking would automatically lead to a revival of the insolvency proceedings against Byju’s.

The appellate tribunal also dismissed the allegation of round-tripping levelled by Byju’s U.S.-based lenders, saying they failed to provide any evidence for the same.

The tribunal further said the money was paid by Riju Raveendran (brother of Byju Raveendran) through sales of his shares.

“In view of the undertaking given and affidavit, the settlement between the parties [is] approved and as a result appeal succeeds and impugned order [passed by the NCLT] is set aside,” said a two-member Chennai bench in its order in the open court.

As per the undertaking, Riju Ravindran has made a payment of ₹50 crore on July 31 against the outstanding dues owed by Byju’s to BCCI. Another ₹25 crore will be submitted on August 2, and the rest of ₹83 crore on August 9 through RTGS.

The NCLAT was hearing a petition filed by Byju’s, challenging the initiation of insolvency proceedings against parent company Think & Learn.

On July 16, the Bengaluru bench of the National Company Law Tribunal (NCLT) directed the initiation of Corporate Insolvency Resolution Proceedings (CIRP) against Byju’s, admitting the plea filed by the Board of Control for Cricket in India (BCCI).

The BCCI had approached the NCLT under the Insolvency and Bankruptcy Code (IBC) over a default of ₹158.9 crore by Think & Learn — once India’s most valuable startup worth $22 billion.

The NCLT has suspended the board of Think & Learn as per the provisions of the IBC and appointed an interim resolution professional (IRP) to take care of the debt-ridden firm.

Byju at the time of admission of BCCI plea by NCLT had said it is hopeful of reaching “an amicable settlement” with the BCCI. File
| Photo Credit: Reuters

The BCCI on July 30 sought a day’s adjournment at appellate insolvency tribunal NCLAT, saying talks are going on with Byju’s, hinting at the possibility of a settlement.

When the hearing on the plea filed by Byju’s promoter against insolvency proceedings started at The National Company Law Appellate Tribunal (NCLAT), Solicitor General of India Tushar Mehta — appearing for the cricket body — informed the Bench that “some talks” are on.

He requested the Bench to adjourn for a day, which was accepted by the new Bench.

Senior advocate Mukul Rohatagi was appearing for a U.S.-based creditor Gas Trust LLC, which is claiming default of ₹8,000 crore loans.

Byju’s Founder Byju Raveendran’s plea was listed before a new Bench comprising Justice Rakesh Kumar Jain and Jatindranath Swain.

On July 29, Justice Sharad Kumar Sharma had recused from the hearing and said he had earlier appeared as the counsel for the Board of Control for Cricket in India (BCCI) before his elevation.

The NCLAT was hearing a petition filed by Mr. Raveendran challenging the initiation of insolvency proceedings against Think & Learn, which runs the edtech company Byju’s.

The Bengaluru Bench of the National Company Law Tribunal (NCLT) on July 16 directed Corporate Insolvency Resolution Proceedings (CIRP), admitting the plea filed by the BCCI.

The BCCI had approached the NCLT under the Insolvency and Bankruptcy Code (IBC) over a default of ₹158.9 crore by Think & Learn — once India’s most valuable startup worth an estimated USD 22 billion.

The NCLT has suspended the board of Think & Learn Pvt. Ltd as per the provisions of the IBC and appointed an interim resolution professional (IRP) to take care of the debt-ridden firm.

Byju at the time of admission of BCCI plea by NCLT had said it is hopeful of reaching “an amicable settlement” with the BCCI.

“As we have always maintained, we wish to reach an amicable settlement with BCCI and we are confident that, despite this order, a settlement can be reached. In the meantime, our lawyers are reviewing the order and will take necessary steps to protect the company’s interests,” a Byju’s spokesperson had said on July 16.

Mr. Raveendran challenged the NCLT order before the NCLAT. He has also approached the Karnataka High Court.

At the high court, Mr. Raveendran challenged the validity of the order and sought the suspension of the NCLT order till the NCLAT hears the appeal.