Byju's in settlement talks with BCCI for repayment of dues

Byju Raveendran, Founder & CEO, BYJU'S

The Board of Control for Cricket in India (BCCI) on July 30 informed the National Company Law Appellate Tribunal (NCLAT) that it is in initial settlement talks with Byju Raveendran to settle its dispute with Think and Learn Private Limited.

Solicitor General Tushar Mehta, who appeared for BCCI said "The matter may be heard tomorrow, they are in talks." The NCLAT accordingly adjourned the case to July 31.

Senior advocate Mukul Rohatgi, who appeared for the US-based lenders of the company, told the NCLAT that their plea was disposed of after the insolvency order and he is seeking to appeal the order.

The tribunal agreed to hear all the applications on July 31.

On July 29, justice Sharad Kumar Sharma of the National Company Law Appellate Tribunal (NCLAT)  recused himself from hearing Byju's founder  Byju Raveendran's plea challenging the order admitting the edtech startup’s parent Think and Learn to bankruptcy on a plea by BCCI.

"I have appeared as a senior counsel for the Board of Control for Cricket in India (BCCI), since they are the main beneficiaries of this order, I cannot take this up," said Sharma, the judicial member of the NCLAT.

The NCLT started bankruptcy proceedings against Think and Learn on July 16 on a Board of Control for Cricket in India's plea over the non-payment of Rs 158 crore.

On July 26, the Karnataka High Court deferred to July 30 Raveendran's plea to suspend the order that admitted Think and Learn Private Limited into insolvency.

Senior advocate Abhishek Manu Singhvi, who appeared for Raveendran, said, "The NCLAT bench has adjourned my appeal to another date to decide on whether one of the judges will have to recuse from the plea. If the Committee of Creditors is formed meanwhile, I will be left remediless, it will become irreversible."

Singhvi said if NCLAT were to adjourn the plea again on July 29 on the recusal of a member, the company faced the threat of the Committee of Creditors (CoC) taking it over without having argued its appeal. He said, "This is like giving a pound of flesh to Shylock."

He sought a stay on setting up of CoC till NCLAT decided Byju’s plea.

Raveendran has filed two petitions in the Karnataka High Court. One challenges the validity of the order, the second seeks suspension of the order till the NCLAT hears the appeal.