In a major relief for Byju’s, the NCLAT on Friday set aside insolvency proceedings against the troubled edtech major over a sponsorship deal and approved a Rs 158 crore settlement with the Board of Control for Cricket in India.
However, the National Company Law Appellate Tribunal (NCLAT) passed the order with a caveat that any failure to make payments on the specific dates mentioned in the undertaking would automatically lead to revival of insolvency proceedings against Byju’s.
The appellate court also dismissed the allegation of back-and-forth levelled by Byju’s US-based lenders, saying they failed to provide any evidence in this regard.
The court further stated that the money was paid by Riju Raveendran (brother of Byju Raveendran) through sale of his shares.
“In view of the undertaking given and the affidavit, the settlement between the parties (is) approved and as a result, the appeal succeeds and the impugned order (passed by the NCLT) is set aside,” a two-member Chennai bench said in its order in open court.
As per the undertaking, Riju Ravindran made a payment of Rs 50 crore on July 31 against the outstanding dues owed by Byju’s to BCCI. Another Rs 25 crore will be released on Friday and the remaining Rs 83 crore on August 9 through RTGS.
The NCLAT was hearing a petition filed by Byju’s, challenging the initiation of insolvency proceedings against parent company Think & Learn.
On July 16, the Bengaluru bench of the National Company Law Tribunal (NCLT) ordered initiation of Corporate Insolvency Resolution Proceedings (CIRP) against Byju’s, admitting the petition filed by the Board of Control for Cricket in India (BCCI).
The BCCI had approached the NCLT under the Insolvency and Bankruptcy Code (IBC) over a default of Rs 158.9 crore by Think & Learn, once India’s most valuable startup valued at USD 22 billion.
The NCLT has suspended the board of directors of Think & Learn under the provisions of the IBC and appointed an interim resolution professional (IRP) to take over the debt-ridden company.
(Only the headline and image of this report may have been reworked by Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First published: August 2, 2024 | 16:47 IS
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