The Supreme Court on Thursday reserved its verdict on a plea of a US firm against the NCLAT order stopping insolvency proceedings against edtech firm BYJU’S .
A bench headed by Chief Justice D Y Chandrachud asked the insolvency resolution professional (IRP) to maintain status quo till the apex court delivers its judgement in the matter.
The bench, also comprising Justices JB Pardiwala and Manoj Misra, considered the plea of US firm Glas Trust Company LLC and asked the IRP not to proceed with the committee of creditors meeting to deal with the BYJU’S case.
While hearing the matter on Wednesday, the top court had questioned the verdict of insolvency appellate tribunal NCLAT setting aside the insolvency proceedings against BYJU’S and approving its Rs 158.9 crore dues settlement with the BCCI.
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Observing that the National Company Law Appellate Tribunal (NCLAT) did not apply its mind while closing the insolvency proceedings against the edtech major, the bench had hinted that it may send back the dispute for fresh adjudication.
The NCLAT, on August 2, granted relief to the embattled edtech firm by setting aside the insolvency proceedings against it after approving its Rs 158.9 crore dues settlement with the Board of Control for Cricket in India (BCCI).
The verdict had come as a huge relief for BYJU’S as it had effectively put its founder Byju Raveendran back in control.
However, the relief remained short-lived as the top court, on August 14, termed the NCLAT verdict as “unconscionable” and stayed its operation while issuing notices to BYJU’S and others on the appeal of the ed-tech firm’s US-based creditor Glas Trust Company LLC against the judgment of the insolvency appellate tribunal.
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Source: India Today
