Byju's Promoters Challenge Insolvency Decision: Supreme Court Admits Appeals

In a crucial legal development, the Supreme Court on Thursday admitted appeals from the promoters of Byju's against the decision by the National Company Law Appellate Tribunal (NCLAT) in Chennai. The tribunal had earlier refused to allow the withdrawal of insolvency proceedings initiated by the Board of Control for Cricket in India (BCCI), despite a full settlement of Rs. 158 crore being reached prior to the formation of the Committee of Creditors (CoC).

The Supreme Court's vacation bench, comprising Justices Vikram Nath and Sanjay Kumar, has also issued notices to Pankaj Srivastava, the former interim resolution professional of Think and Learn, and the US-based Glas Trust Company LLC. The bench has scheduled a further hearing on this matter for July 21 and indicated that interim relief could be considered.

Advocate KK Venugopal, representing Byju's promoters, argued that the full settlement amount had been paid and communicated before the CoC's constitution. Meanwhile, senior counsel Guru Krishna Kumar highlighted issues arising from the appointed Resolution Professional's actions, which allegedly jeopardize Byju's significant US-based assets.

Previously, the Bengaluru bench of the National Company Law Tribunal (NCLT) had directed that the settlement offer be presented to the new CoC, including US-based Glas Trust, a key creditor. Despite this, Byju's, along with BCCI and Riju Ravindran, filed an appeal to withdraw the insolvency proceedings, underscoring the settlement finalization ahead of the CoC's establishment.

(With inputs from agencies.)