Supreme Court reverses NCLAT’s stop on Byju’s insolvency proceedings
THE JHARKHAND STORY DESK Advertisement New Delhi, Oct 23: The Supreme Court on Wednesday overturned the National Company Law Appellate Tribunal’s…
THE JHARKHAND STORY DESK
New Delhi, Oct 23: The Supreme Court on Wednesday overturned the National Company Law Appellate Tribunal’s (NCLAT) decision that had put a stop to insolvency proceedings against the beleaguered ed-tech firm Byju’s.
A three-judge bench led by Chief Justice D.Y. Chandrachud which also included Justices JB Pardiwala and Manoj Misra overturned the NCLAT’s approval of Byju’s settlement of Rs 158.9 crore in dues with the Board of Control for Cricket in India (BCCI).
It mandated that the cricket board deposit the Rs 158.9 crore settlement sum with a committee of creditors.
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The bench rendered its decision on an appeal filed by the US firm Glas Trust Company LLC challenging the NCLAT order.
Noting that the NCLAT failed to thoroughly consider the matter when it closed the insolvency proceedings against the ed-tech giant, the bench mandated a new adjudication of the case.
On August 2, the NCLAT halted insolvency proceedings against Byju’s after approving its Rs 158.9 crore settlement with the BCCI, allowing founder Byju Raveendran to regain control over the company’s finances.
However, the Supreme Court labelled the NCLAT ruling “unconscionable” on August 14, staying the order and issuing notices to Byju’s and others regarding an appeal from Glas Trust Company LLC, a US-based creditor.
