 "Supreme Court delays insolvency proceedings against Byju’s amid disputes over a ₹158.9 crore settlement with BCCI, fueling financial drama.")
The Supreme Court has agreed to hear an appeal from Glas Trust Company LLC, a US creditor, regarding a recent NCLAT judgment that paused insolvency proceedings against Byju’s, the prominent ed-tech firm. This decision comes after NCLAT approved a Rs 158.9 crore settlement with the BCCI over outstanding sponsorship payments. Byju’s lawyers argue the petition from the US firm lacks merit, emphasizing that the company’s financial support comes solely from its promoters. The Supreme Court previously described the NCLAT’s ruling as “unconscionable” and has directed the BCCI to keep the settlement funds in an escrow account. This legal battle marks another significant chapter in Byju’s ongoing efforts to navigate its financial challenges.
The Supreme Court of India has agreed to expedite the hearing of an appeal from US-based creditor Glas Trust Company LLC regarding the insolvency proceedings against ed-tech giant BYJU’s. The case highlights a significant decision made by the National Company Law Appellate Tribunal (NCLAT), which had previously approved a Rs 158.9 crore settlement between BYJU’s and the Board of Control for Cricket in India (BCCI).
During a recent court session, senior advocate NK Kaul, representing BYJU’s, emphasized the urgency of the matter, stating that the company has relied solely on funding from its promoters, indicating no external borrowings. Chief Justice D Y Chandrachud assured that the case will be listed for an early hearing, acknowledging the pressing nature of the situation.
The NCLAT’s earlier decision on August 2 was seen as a relief for BYJU’s, as it effectively allowed founder Byju Raveendran to regain control of the company. However, the Supreme Court has raised questions about the merit of the NCLAT’s ruling, labeling it “unconscionable” and placing a hold on its execution. The court has instructed the BCCI to maintain the Rs 158 crore received from BYJU’s in a separate escrow account until further instructions are provided.
This ongoing legal battle has its roots in a sponsorship agreement between BYJU’s and the BCCI made in 2019. The ed-tech firm had been adhering to its payment obligations until mid-2022, after which it defaulted on the significant payment of Rs 158.9 crore. The crisis led to insolvency proceedings initiated by the BCCI, prompting BYJU’s to reach a settlement.
As the situation continues to evolve, all eyes are on the upcoming Supreme Court hearings, which could determine the future of BYJU’s and its financial dealings.
Tags: BYJU’s, BCCI, Supreme Court, NCLAT, insolvency proceedings, Glas Trust Company, sponsorship settlement, education technology, legal news, India.
What is the SC agreeing to list in relation to Byju’s?
The Supreme Court is agreeing to hear a case about insolvency proceedings involving Byju’s.
Why is Byju’s facing insolvency proceedings?
Byju’s is facing these proceedings due to financial issues and debts that it has struggled to manage.
What does “insolvency” mean?
Insolvency means that a company cannot pay its debts and may need to go through legal processes to handle its financial problems.
What will happen during the Supreme Court hearing?
During the hearing, the court will listen to arguments from both sides and decide how to move forward with the case.
How could this affect Byju’s?
If the court decides to proceed with insolvency, it could impact Byju’s operations, finances, and future plans.
