The Supreme Court on Wednesday set aside National Company Law Appellate Tribunal’s verdict that had stopped insolvency proceedings against embattled ed-tech firm Byju’s.
A bench headed by Chief Justice D Y Chandrachud also reversed the order of the NCLAT approving Byju’s ₹ 158.9 crore dues settlement with the Board of Control for Cricket in India (BCCI).
It directed the cricket board to deposit the settlement amount of ₹ 158.9 crore with a committee of creditors.
The bench, also comprising justices J B Pardiwala and Manoj Misra, delivered its verdict on an appeal by US firm Glas Trust Company LLC against the NCLAT order.
Observing that the NCLAT did not apply its mind while closing the insolvency proceedings against the ed-tech major, the bench ordered fresh adjudication in the case.
The NCLAT, on August 2, granted relief to the embattled ed-tech firm by setting aside the insolvency proceedings against it after approving its ₹ 158.9 crore dues settlement with the BCCI.
The NCLAT decision was a big relief for Byju’s because it effectively restored the company’s founder, Byju Raveendran, control over its finances and activities.
However, the comfort was short-lived, as the highest court ruled on August 14 that the NCLAT ruling was “unconscionable”.
It also halted the operation of the NCLAT order while issuing notices to Byju’s and others on the appeal of Glas Trust Company LLC, the ed-tech firm’s US-based creditor, against the insolvency tribunal’s decision.
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Source: NDTV
