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Informist, Thursday, Aug 1, 2024

 

NEW DELHI – The Chennai bench of the National Company Law Appellate Tribunal today stayed the formation of the committee of creditors of debt-ridden Think & Learn Pvt Ltd, parent of online educational services company Byju's, till Friday. The appellate tribunal hinted at passing an order Friday on whether to allow a settlement between Think & Learn and its operational creditor, the Board of Control for Cricket in India.

 

On Wednesday, the appellate tribunal was informed that the parties had arrived at a settlement in the insolvency case. Riju Raveendran, brother of Think & Learn co-founder Byju Raveendran and one of the largest shareholders of the company, would pay off the dues of the cricket board, the parties told the tribunal.

 

However, advocate Mukul Rohatgi, appearing for Think & Learn's US lender GLAS Trust Company LLC, contested the payment by the debt-ridden company. Thereafter, the appellate tribunal asked the brothers to file an affidavit or submit an undertaking that the source of money was not tainted.

 

Today, advocate Punit Bali, appearing for Riju, said they had filed an affidavit clarifying that 1.58 bln rupees being paid to the board was his personal money. Bali said Riju earned 36 bln rupees from the sale of his shares in Think & Learn, and paid over 10 bln rupees as income tax on that amount. "This is all tax-paid money. It is my (Riju's) money, my personal shares, and money that I have infused back into the company," Bali said.

 

However, Rohatgi contested the affidavit and said, "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 (in the US) you are a defaulter and here you come to India and say I'll pay."

 

Rohatgi said the brothers were fugitives and there is an Enforcement Directorate probe against Byju. Meanwhile, counsel for the interim resolution professional of Think & Learn said Byju had refused to share details of the company's bank accounts and other data.

 

The appellate tribunal was hearing Byju Raveendran's plea against the order of the Bengaluru bench of the National Company Law Tribunal admitting the cricket board's insolvency petition against Think & Learn. The tribunal appointed Pankaj Srivastava as interim resolution professional for Think & Learn to carry out the functions mentioned under the Insolvency and Bankruptcy Code, 2016. It also ordered a moratorium against Think & Learn under section 14 of the code.  End

 

Reported by Surya Tripathi

Edited by Rajeev Pai

 

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