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Informist, Wednesday, Aug 14, 2024

 

--SC stays order approving BCCI, Byju parent co settlement in IBC case 

--CONTEXT: Byju parent co's US lender in SC vs co, BCCI's settlement 

--SC notice to Byju Raveendran, BCCI, Think & Learn on lender's plea 

--SC to BCCI: Maintain 1.6 bln rupees in separate account in Bjyu case 

--SC to next hear Byju parent co IBC case on Aug 23 

 

NEW DELHI - The Supreme Court today stayed the National Company Law Appellate Tribunal's order to approve a settlement deal between debt-ridden Think & Learn Pvt Ltd, the parent of online educational services company BYJU's, and its operational creditor, the Board of Control for Cricket in India. The court issued a notice to Think & Learn, its co-founder Byju Raveendran and the cricket board on the company's US lender GLAS Trust Co LLC's petition opposing the settlement.

 

The Bench led by Chief Justice of India D.Y. Chandrachud asked the cricket board to keep 1.58 bln rupees, realised in the settlement, in a separate account. The court placed the matter for next hearing on Aug 23.

 

On Aug 2, the appellate tribunal had set aside the order passed by the Bengaluru bench of the National Company Law Tribunal in July to start insolvency proceedings against Think & Learn. However, the insolvency proceedings shall automatically be revived against Think & Learn if there is a breach of undertaking given by its co-founder Byju Raveendran on payment to the cricket board, the appellate tribunal had said. 

 

The appellate tribunal had passed the order after it was informed that the parties had arrived at a settlement in the insolvency case. Riju Raveendran, brother of Byju Raveendran and one of the largest shareholders of the company, would pay off the dues of the cricket board, the parties had told the tribunal.

 

However, GLAS Trust Co LLC contested the payment by the debt-ridden company. Advocate Mukul Rohatgi, appearing for the US lender had 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." Further, Rohatgi said the brothers were fugitives and there is an Enforcement Directorate probe against Byju. 

 

After the appellate tribunal refused to entertain the US lender's objection, it moved the apex court. "Where is the procedure followed? Has a lookout notice (been) issued against him (Byju Raveedran)? Is it true that both brothers are outside India?" the apex court asked today.  End

 

Reported by Surya Tripathi

Edited by Vandana Hingorani

 

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