 "Supreme Court to hear Byju’s insolvency case amid creditor disputes and a critical Rs 158.9 crore settlement with BCCI.")
The Supreme Court is set to hear an appeal on September 17 from Glas Trust Company LLC, a US-based creditor, regarding the ed-tech firm BYJU’s. This follows a previous National Company Law Appellate Tribunal (NCLAT) decision that paused insolvency proceedings against BYJU’s and approved a Rs 158.9 crore settlement with the Board of Control for Cricket in India (BCCI). Senior lawyers have urged for an urgent hearing due to ongoing developments, including concerns raised by the creditor about the settlement process. In August, the Supreme Court temporarily stayed the NCLAT ruling and directed the BCCI to hold the settlement funds in a separate escrow account until further notice. This case stems from BYJU’s failure to meet its sponsorship payment obligations.
Byju’s Faces Supreme Court Hearing Over Insolvency Appeal
In a significant development for the ed-tech giant Byju’s, the Supreme Court of India is set to hear an appeal from US-based creditor Glas Trust Company LLC on September 17, 2024. This appeal challenges a ruling by the National Company Law Appellate Tribunal (NCLAT), which had previously paused insolvency proceedings against Byju’s and approved a settlement of Rs 158.9 crore with the Board of Control for Cricket in India (BCCI).
A bench led by Chief Justice D.Y. Chandrachud has been urged to consider this matter swiftly due to ongoing developments. Senior advocate N.K. Kaul, representing Byju’s, emphasized the need for urgency in the case. Solicitor General Tushar Mehta, who is representing the BCCI, and other legal experts also supported the call for a prompt hearing.
Earlier, the Supreme Court had halted the NCLAT’s decision, labeling it “unconscionable,” and had directed that the Rs 158 crore paid by Byju’s to the BCCI be kept in a separate escrow account until further directives. The case stems from Byju’s failure to meet its payment obligations related to a sponsorship deal with the BCCI, which the company had maintained until mid-2022.
With the stakes high for both Byju’s and its creditors, the upcoming hearing will be closely monitored by the industry and educational stakeholders alike, as outcomes may greatly influence the company’s financial health and operational future.
Tags: Byju’s, Supreme Court, insolvency, BCCI, Glas Trust Company, ed-tech, NCLAT, hearing, sponsorship deal.
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What is the court hearing about on September 17 regarding Byju’s?
The hearing is about a plea related to insolvency proceedings against Byju’s, which is a major ed-tech company in India. -
Why is Byju’s facing insolvency proceedings?
Byju’s is facing insolvency proceedings due to financial difficulties and issues related to repaying loans and debts. -
Who is filing the plea against Byju’s?
The plea is likely filed by creditors or lenders who want to recover the money owed to them by Byju’s. -
What could happen if the court accepts the plea?
If the court accepts the plea, Byju’s may enter insolvency proceedings, which could lead to restructuring or selling parts of the business to pay off debts. - How might this affect Byju’s employees and customers?
If insolvency proceedings begin, it could lead to job losses for employees and impact services for customers, depending on how the company is restructured.
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