‘Why with BCCI only?’ Supreme Court questions order clearing Byju’s settlement

The Supreme Court on Thursday reserved its verdict on a plea by a US company against the National Company Law Appeals Tribunal’s (NCLAT) move to dismiss insolvency proceedings against Byju’s after approving the edtech giant’s Rs 158.9 crore dues settlement with the Board of Control for Cricket in India (BCCI).
This comes a day after a three-judge bench headed by Chief Justice of India DY Chandrachud asked Byju’s why it chose to settle a debt only with the BCCI when it had over 15,000 crore debt.
During today’s hearing, the bench also asked the interim resolution professional (IRP) to maintain status quo and not hold any committee of creditor’s meeting until the Supreme Court delivers its final judgement on the matter.
On Wednesday, the Chief Justice had said, “The company (Byju’s) is in debt of Rs 15,000 crore. When the quantum of the debt is so large, can one creditor (BCCI) walk away saying one promoter is ready to pay me?”

“Why pick up BCCI and settle with them only from your personal assets. The NCLAT accepts all this without applying its mind to it.”
The court also hinted that it may send back the dispute for fresh adjudication.
The August 2 NCLAT verdict came as a huge relief for Byju’s as it effectively put its founder Riju Raveendran back in control.
However, the Supreme Court on August 14 termed the verdict as “unconscionable” and stayed its operation while issuing notices to Byju’s and others on the appeal of the ed-tech firm’s US-based creditor Glas Trust Company LLC against the tribunal’s judgement.
The insolvency case was initiated after BCCI claimed that Byju’s failed to pay Rs 158 crore in sponsorship dues.
The proceedings were halted after Raveendran agreed to settle the dues by paying the amount himself.