New DelhiA few moments ago
- Copy link
The Supreme Court on Monday (July 21) upheld the order to dismiss the appeal of BCCI and Byzus co-founder Riju Ravindran. BCCI and Riju Ravindran had demanded the court to withdraw bankruptcy proceedings against the company.
In fact, the Supreme Court rejected the appeals challenging the April 17 decision of the Law Appellate Tribunal (NCLAT), the national company of BCCI and Riju Ravindran. The NCLAT then rejected the appeals filed by BCCI and Riju Ravindran.
These appeals demanded withdrawal of insolvency against Byju’s and considering the agreement between the debt -ridden Edtech firm and the top cricket body. BCCI and Riju Rabindran challenged the order of the Bangalore bench of the National Company Law Tribunal. Riju Rabindran is the brother of Byju’s co-founder Bayju Rabindran.
The National Company Law Tribunal directed to put its Settlement Offer in front of the New Committee of Creditors (COC) on 10 February 2025. The committee also has a US-based glass trust member, which gave a loan of US $ 1.2 billion to Bayjus.
NCLAT’s Chennai Bench retained NCLT’s instructions
Justice Rakesh Kumar Jain and Justice Jatindranath Swain of Chennai Bench of NCLAT upheld the NCLT’s instructions and said that the settlement was filed after the formation of the proposal COC. Therefore, according to the provisions of Section 12A of the Insolvency and Bankruptcy Code (IBC), it needs the approval of the lenders body.
Section 12 A of IBC determines the way out of bankruptcy. Both BCCI and Riju have argued that the Settlement Application under Section 12A was filed before the formation of the COC, so the provisions of Regulation 30A (1) (A) with section 12A would apply, not the provisions of regulation 30A (1) (b).
The NCLT may allow the COC to withdraw the insolvency processed by any financial or operational creditor under Section 7,9 or Section 10 based on the application filed with approval of the voting share.
The agreement between Byju’s-BCCI was approved in August 2024
In August 2024, NCLAT approved an agreement between Byju’s and BCCI. BCCI owed Rs 158.9 crore on the startup, on which both of them had settled.
The NCLAT then rejected the proceedings of insolvency against the startup. But the lenders of Byju’s reached the Supreme Court on the settlement and the court, stopping the settlement, described it as a violation of the IBC rules.
After this, the appeal of BCCI and Riju to withdraw the bankrupt proceedings first reached NCLT and then NCLAT. Under the settlement, BCCI is being paid by Riju Rabindran.
