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Informist, Thursday, Sep 26, 2024

 

--SC reserves order on BYJU's parent co-BCCI insolvency case

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

--SC asks BYJU's resolution officer to keep status quo till verdict 

--SC to BYJU's officer: Don't hold lenders' panel meet till verdict 

 

NEW DELHI – The Supreme Court today reserved its verdict on a challenge against 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 top court asked the resolution professional of Think & Learn to maintain the status quo and not hold any meetings of the committee of creditors till a verdict is pronounced.

 

"Judgement reserved. Until the judgement is pronounced, the resolution professional shall maintain status quo and shall not hold any meeting of the committee of creditors," said the Bench led by Chief Justice of India D.Y. Chandrachud. The apex court was hearing a petition by Think & Learn's US lender GLAS Trust Co LLC, opposing the settlement.

 

GLAS Trust Co LLC has also challenged its removal from the committee of creditors of Think & Learn and has sought the removal of the resolution professional of the company. GLAS Trust had said it was a financial creditor of the debt-ridden company and had over 19% vote share. However, the interim resolution professional disqualified it as some documents had not been provided by it, said GLAS Trust.

 

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 appellate tribunal had said that the insolvency proceedings would automatically be revived against Think & Learn if there was a breach of undertaking given by its co-founder Byju Raveendran on payment to the cricket board. 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.

 

During the hearing in the top court, the Bench, also comprising Justice J.B. Pardiwala and Justice Manoj Misra raised doubts over the appellate tribunal's order. The Bench observed that there was "no application of mind" by the appellate tribunal while passing the verdict. On Wednesday, the top court asked why Think & Learn chose to settle the 1.58 bln rupees debt alone with the BCCI when it had over 150 bln rupees debt altogether. How the appellate tribunal could approve such a settlement, the top court had asked.

 

GLAS Trust Co LLC had contested the payment by the debt-ridden company as a settlement to BCCI. 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 had said the brothers were fugitives and there is an Enforcement Directorate probe against Byju.  End

 

Reported by Surya Tripathi

Edited by Akul Nishant Akhoury

 

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