BCCI May Move NCLT To Seek Withdrawal Of Byju's Insolvency Proceedings
BCCI is likely to move the NCLT to seek withdrawal of insolvency proceedings it had initiated against edtech player Byju's
Board of Control for Cricket in India (BCCI) is likely to move the NCLT to seek withdrawal of insolvency proceedings it had initiated against edtech player Byju’s, CNBC-TV18 reported citing sources. This comes after the Supreme Court last month quashed the National Company Law Appellate Tribunal’s (NCLAT) order allowing settlement between the cricket board and the edtech company.
The Supreme Court on October 23, 2024, set aside a judgment of the National Company Law Appellate Tribunal (NCLAT) allowing a ₹158 crore settlement between ed-tech firm Byju’s with the Board of Control for Cricket in India (BCCI).
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A three-judge Bench headed by Chief Justice of India D.Y. Chandrachud said there was “grave deviation from the procedure" in bringing the case to the NCLAT itself.
The Bench upheld the locus standi of US-based creditor Glas Trust Company LLC which had filed the appeal against the NCLAT decision. The court said Glas had raised “reasonable apprehensions".
The judgment authored by Chief Justice Chandrachud directed Rs 158 crore and accrued interest in an escrow account to be shifted to the Committee of Creditors (CoC). The CoC would deposit the amount in the escrow account. The court was careful not to comment on the merits of the case.
During back-to-back hearing in the case, the apex court had questioned whether the BCCI could be allowed to strike a “personal agreement" with Byju’s promoter and “walk away" with its money.
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