Byju's tension increased! Supreme Court resumes bankruptcy proceedings, NCLAT order also rejected

New Delhi : The Supreme Court today rejected the decision of the National Company Law Appellate Tribunal (NCLAT) in which it had stayed the insolvency proceedings against the troubled educational technology company Byju's.

Today on this matter Chief Justice D.Y. Chandrachud, Justice J. B. A bench of Justices Pardiwala and Manoj Mishra also overturned the NCLAT order allowing Byju's to settle its dues of Rs 158.9 crore with the Board of Control for Cricket in India (BCCI).

Supreme Court sets aside the decision of National Company Law Appellate Tribunal (NCLAT) closing the insolvency proceedings against ed-tech company Byju’s by accepting a settlement between it and the Board of Control for Cricket in India (BCCI) for about Rs 158 crores.

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The court directed the Cricket Board to deposit the settlement amount of Rs 158.9 crore with the committee of creditors. The bench gave its verdict on the petition of American company Glass Trust Company LLC against the NCLAT order.

The court said NCLAT did not exercise discretion while closing the insolvency proceedings against the educational technology major and ordered a fresh decision in the case.

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NCLAT had on August 2 ordered closure of the bankruptcy proceedings against Byju's after approving the settlement of outstanding dues of Rs 158.9 crore with the Board of Control for Cricket in India (BCCI). The decision came as a huge relief for Byju's, as it effectively brought its founder Byju Raveendran back to the controlling position.

However, this relief was short-lived as in a blow to Byju, the apex court had stayed the NCLAT decision on August 14. The case pertains to Byju's default in payment of Rs 158.9 crore related to a sponsorship deal with BCCI. (with agency input)