Justice Sharad Kumar Sharma of the National Company Law Appellate Tribunal (NCLAT) on July 29 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.
The decision may lead to delay in hearing the case even as Byju’s has been pushing for an urgent hearing against the National Company Law Tribunal (NCLT) admitting the once most valued startup in the country to insolvency resolution process.
"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," Sharma, the judicial member of the NCLAT, said.
The case will now be placed before NCLAT chairperson Justice (retd) Ashok Bhushan, who will take a call on the course of action.
NCLAT's principal bench is in Delhi and the southern bench in Chennai. The Delhi bench has four functioning courts, the Chennai bench has just one. Sharma’s decision to recuse sends the case automatically to Delhi. Each court has a judicial member and a technical member.
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.
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