Byju's insolvency case: SC reserves judgment on plea challenging BCCI settlement

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The Supreme Court has on September 26 put a temporary halt to meetings organised by the Resolution Professional (RP) handling Byju’s insolvency case. The Court’s final judgment on the case is still pending.

During the hearing, the Solicitor General, representing Byju’s creditors, laid out conditions for a possible settlement, including ensuring that any payment must not come from Byju's assets.

The apex court also questioned whether the current legal rules allow for a settlement outside of the set procedures, particularly Regulation 30A of the Insolvency and Bankruptcy Code (IBC).

The case also delved into the financial records of Think & Learn Pvt Ltd, Byju’s parent entity. Counsel for the creditors, Shyam Divan, cited a substantial loss of Rs 8,104.68 crore as of March 2022, emphasising that transparency documents had not been provided as per regulations. He also referenced issues with Byju’s default claims, highlighting that the auditor for the company resigned in September 2024, raising concerns about the company’s financial health.

Byju’s legal team argued that the company has been excluded from key decisions in the insolvency process, despite owning 99.18 percent of the business. They requested a pause on the insolvency proceedings, citing irregularities in how the process has been handled.

All meetings led by the RP have been put on hold, maintaining a crucial pause in Byju’s ongoing insolvency battle.

The case revolves around Byju's ongoing insolvency proceedings and its dispute with US-based lenders, represented by Glas Trust.

Glas Trust had challenged the payment settlement between Byju’s and the Board of Control for Cricket in India (BCCI), claiming the Rs 158 crore payment was “tainted” and stolen from them.

Additionally, Glas Trust filed an appeal after being removed from the Committee of Creditors (CoC) by the RP Pankaj Srivastava after he ruled that Glas Trust no longer met the requirement of representing at least 51 percent of Byju’s creditors, leading to its exclusion from the decision-making body.