The National Company Law Appellate Tribunal (NCLAT), Chennai on Friday (September 6, 2024) ordered status quo to be maintained as on date in the matter of Corporate Insolvency Resolution Process of Coastal Energen Private Limited, based on an appeal filed against the approval of a ₹3,335.52 crore (excluding resolution process cost) resolution plan submitted by Dickey Alternative Investment Trust and Adani Power Limited consortium for the company.

NCLAT Judicial Member Justice Sharad Kumar Sharma and Technical Member Jatindranath Swain directed the resolution professional Radhakrishnan Dharmarajan to run the Coastal Energen plant and maintain the resolution amount in a separate account until the case is decided on merits.

The NCLAT has posted the case for further hearing on September 18, 2024.

Interestingly, the development comes even as the Dickey Alternative Investment Trust (DAIT) and Adani Power consortium have already implemented the resolution plan and taken over Coastal Energen.

Last month, the National Company Law Tribunal (NCLT) Chennai gave the nod for Dickey Alternative Investment Trust and Adani Power resolution plan for Coastal Energen, which owns and operates an imported coal-based thermal power plant at Tuticorin, Tamil Nadu. As per the approved resolution plan, secured lenders of Coastal Energen will get about ₹3,330 crore, which is 28.52% of the admitted claims of about ₹11,677 crore.

Against the NCLT nod, Ahmed Buhari, erstwhile director of Coastal Energen, moved an appeal before the NCLAT, alleging that the due process was not followed in picking the DAIT and Adani Power consortium as the successful bidder under the insolvency and bankruptcy process.

NCLT admitted Coastal Energen for the corporate insolvency resolution process via an order dated February 4, 2022, following a case filed by the State Bank of India, and had appointed Radhakrishnan Dharmarajan as the resolution professional.

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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
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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.

National Company Law Appellate Tribunal (NCLAT) Chennai Judicial Member Justice Sharad Kumar Sharma on July 29 recused himself from hearing an appeal by Byju Raveendran against the insolvency proceedings ordered against Think & Learn Private Limited, which runs Byju’s, citing that he has appeared for Board of Control for Cricket in India (BCCI) as senior counsel in number of cases.

He directed for the matter to be placed before NCLAT chairperson for nomination of appropriate Bench for hearing the case.

Also read: Byju’s woes: A timeline of the Indian edutech giant’s troubles at home and abroad

The National Company Law Tribunal (NCLT), Bengaluru, had ordered insolvency proceedings against Think & Learn Private Limited. The development came after the Board of Control for Cricket in India (BCCI) filed a petition claiming a default of ₹159 crore.

The NCLT had appointed Pankaj Srivastava as an interim resolution professional, who will oversee the management of Byju’s and power of board of directors was suspended for now.

Byju Raveendran, suspended director, promoter, & shareholder of Think & Learn Private Limited had moved NCLAT against the insolvency proceedings order. At the hearing on July 29, Justice Sharad Kumar Sharma said he is not proposing to take up the matter, as he has been appearing as senior counsel for BCCI. “So, I can’t hear the matter,” he said.

“I will not venture into this. I have been regular counsel for the BCCI in a number of cases”, Justice Sharad Kumar Sharma said and directed the case to be placed before NCLAT Chairperson for nomination of an appropriate Bench.

Ashok Bhushan. File
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Effective cooperation among the BRICS nations in striking the right balance between promoting sustainability and competition is pertinent to deal with complex challenges, National Company Law Appellate Tribunal (NCLAT) chairperson Ashok Bhushan said on October 12.

Emphasising the importance of having free and fair competition in the market place, he also said there is a need for robust mechanism to regulate digital markets.

He was delivering the keynote address at the eighth BRICS International Competition Conference 2023 in the national capital. “Strong anti-trust enforcement is an essential element of the overall public policy design governing the companies,” he said.

Further, he noted that an effective cooperation among the BRICS nations in striking the right balance between promoting sustainability and competition is pertinent in order to deal with complex challenges.

More than 600 delegates are expected to participate in the conference that concludes on October 13. Last time, this conference happened in India in 2013. According to the Chairperson of the National Company Law Appellate Tribunal (NCLAT), free and fair competition is a key pillar for the market economy.

“Incorporation of sustainability into competition law had the potential to stimulate innovation, development of cleaner technologies, renewable energy sources and sustainable solutions across various industries,” he noted.