The Chennai bench of the National Company Law Appellate Tribunal (NCLAT), have directed the National Company Law Tribunal (NCLT) to decide the application filed by Board of Control for Cricket in India (BCCI) to withdraw the corporate insolvency resolution process (CIRP) against Byju’s within a week’s time
The Tribunal resolved the appeal of former Byju promoter Riju Raveendran, who contested the reinstatement of Aditya Birla Finance and Glas Trust in Byju’s Committee of Creditors (CoC). The NCLT’s ruling dated 29.01.2025, which ordered disciplinary action against Pankaj Srivastava, Resolution Professional (RP) of Think & Learn, Byjus’ parent company, was contested by Riju Raveendran.
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Riju Raveendran said in the NCLAT petition that the NCLT ought not to have restored the CoC while the case for CIRP withdrawal as a result of the BCCI settlement was still ongoing. He said that even before the CoC was established, a deal with the BCCI had been reached. Additionally, he said that NCLT’s direction for the reconstitution of CoC violates the Supreme Court’s ruling that gave them the freedom to seek suitable remedies after the settlement.
The bench comprising Justice (retd) Rakesh Kumar Jain (Judicial Member) and Jatindranath Swain (Technical Member) directed the NCLT to decide the application (for withdrawal by BCCI) preferably in a week’s time. The National Company Law Tribunal (NCLT) has directed the BCCI to approach Byju’s lenders to negotiate a settlement regarding the insolvency proceedings initiated against the edtech company.
The payment dispute had already been settled between Byju’s and the BCCI. However, Byju’s U.S. lenders, who were represented by Glas Trust, contested this settlement, claiming that the money used for it was stolen.
The insolvency procedures were revived when the Supreme Court of India overturned the previous agreement between Byju’s and the BCCI. The court stressed that rather than going straight to the appeals tribunal, the settlement ought to have gone via the National Company Law Tribunal (NCLT) and the company’s insolvency administrator. The NCLT has now directed the BCCI to speak with Byju’s lenders in order to try to find a solution in light of the Supreme Court’s ruling. This action emphasizes how crucial it is to include all pertinent parties in the settlement process, particularly the creditors who have a substantial financial stake in the business’s activities.
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