Insolvency Case
SC refuses to stop BYJU'S parent co's creditors setting up IBC panel
This story was originally published at 22:16 IST on 20 August 2024
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NEW DELHI – The Supreme Court has, for now, refused to stop the formation of a committee of creditors of debt-ridden Think & Learn Pvt Ltd, parent of online educational services company BYJU'S. The top court said it will hear Think & Learn's request to stop the formation of the panel Thursday.
Advocate Abhishek Manu Singhvi, appearing for the company, requested the court to ask the resolution professional appointed for the company under the Insolvency and Bankruptcy Code, 2016, to not constitute the lenders' panel before Friday. Solicitor General Tushar Mehta, appearing for the company's creditor Board of Control for Cricket in India, said the committee cannot be formed without the apex court hearing the case.
On Aug 14, the apex court stayed the National Company Law Appellate Tribunal's order approving a settlement between Think & Learn and its operational creditor, the cricket board. The court issued a notice to Think & Learn, co-founder Byju Raveendran, and the cricket board on a petition from the company's US lender GLAS Trust Co LLC opposing the settlement.
A bench headed 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, and placed the matter for hearing on Friday.
On Aug 2, the appellate tribunal had set aside an order passed by the Bengaluru bench of the National Company Law Tribunal in July to start insolvency proceedings against Think & Learn. The appellate tribunal had passed the order after it was informed that the parties had arrived at a settlement in the insolvency case. However, GLAS Trust Co LLC contested the payment by the debt-ridden company. End
Reported by Surya Tripathi
Edited by Rajeev Pai
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