SC stays NCLAT order that allowed Byju's settlement with BCCI

SC stays NCLAT order that approved Byju's settlement with BCCI

In a setback for the embattled edtech firm Byju's, the Supreme Court on August 14 stayed the NCLAT order that allowed settlement between the firm and Board of Control for Cricket in India (BCCI).

The Rs 158 crore that Byju's has paid to the BCCI will be kept in a separate escrow account till the next date of hearing, said a bench-led by CJI DY Chandrachud.

"Pending further orders there shall be a stay on the order. In the meantime BCCI shall maintain Rs 158 crores realised as settlement in a separate account," the CJI said.

Solicitor General Tushar Mehta, appearing for the BCCI, opposed the appeal against the NCLAT order, saying, "Stay means our settlement (with Byju's)goes. We are trying to persuade."

The matter is scheduled to be heard on August 23.

Byju’s US-based lender Glas Trust had objected to the payment settlement between Board of Control for Cricket in India (BCCI) and Byju's, saying the Rs 158 crore that the latter agreed to pay to the former was “tainted” and stolen from them.

Riju Raveendran, Byju’s brother and shareholder, agreed to clear the dues from his personal funds, which were generated from the sale of Think and Learn's shares between 2015 and 2022.

“We are left with nothing, these two Raveendrans have voluntarily gone for insolvency in the US. There is nothing on record to show that they have any money. It can't be that there (US) you are a defaulter and here you come to India and say I'll pay," senior advocate Mukul Rohatgi, who appeared for the lenders had said.

The settlement however was approved by NCLAT on August 2, putting a halt to bankruptcy proceedings against Byju's parent Think and Learn and gave the company’s control back to founder Byju Raveendran.

Objecting to this, Glas Trust, representing some lenders of a Byju's group company, filed an appeal before Supreme Court, challenging the appeals tribunal's verdict.

The consortium of lenders had also filed a plea in the Bankruptcy Court of Delaware in the US to block Riju Ravindran from repaying BCCI, arguing that the money should go to them instead.

However, the plea was rejected on the grounds of non-interference with proceedings in another country’s judicial system.

The education technology company has suffered several setbacks in the last few years, including boardroom exits, an auditor resignation, and a public spat with foreign investors over alleged mismanagement. Byju's, currently valued at less than $3 billion, has denied any wrongdoing.