On August 14, the Supreme Court of India upheld the National Company Law Appellate Tribunal’s (NCLAT) order that allowed insolvency proceedings against Ed-Tech giant BYJU’s. Once a major sponsor of the Indian cricket team, BYJU’s had recently settled its dues of INR 158.9 crore with the Board of Control for Cricket in India (BCCI).
However, on August 22, the court declined to issue an interim order that would prevent the Committee of Creditors (CoC) from convening a meeting to discuss the insolvency proceedings. This development comes as a significant setback for BYJU’s, which had hoped for some relief. Despite this, the case isn’t over yet.
Chief Justice D.Y. Chandrachud, along with Justices J.B. Pardiwala and Manoj Misra, have scheduled the final hearing for August 27. The situation arose after the US-based creditor Glas Trust Company LLC appealed the NCLAT’s decision to the Supreme Court. The bench made it clear that any progress could be halted if they found the US firm’s appeal lacked merit.
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“Issue notice. Pending further orders, there shall be a stay of the impugned order of August 2 of NCLAT. In the meantime, BCCI shall maintain the amount of Rs 158 crore, which shall be realized in pursuance of a settlement, in a separate escrow account until further orders,” the bench stated, as quoted by The Indian Express.
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Senior advocate Abhishek Singhvi represented BYJU’s in court, while Solicitor General Tushar Mehta appeared on behalf of the BCCI. Both sides confirmed that the CoC had already been formed, with the US-based firm holding a commanding 98% stake. Singhvi argued that constituting the CoC at 7 pm on August 21 was unfair, as it could bias the proceedings against BYJU’s.
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“This CoC could have been constituted tomorrow with the court’s permission. This whole thing is done to make my argument irreversible,” Singhvi asserted. The legal battle continues, with the next hearing set to determine the fate of the embattled Ed-Tech company.
