SC to hear BYJU'S insolvency case on August 22
The Supreme Court has dismissed a plea from BYJU'S, aimed at preventing the formation of a creditors' committee. This decision was made pending further deliberation on the case by the apex court. Despite denying interim relief to both BYJU'S and the Board of Control for Cricket in India (BCCI), the SC has agreed to conduct a detailed hearing about BYJU'S insolvency case on August 22.
SC revives case against BYJU'S
On August 14, the Supreme Court reinstated the insolvency case against BYJU'S. This move overturned an order from the National Company Law Appellate Tribunal (NCLAT), that had previously dismissed insolvency proceedings against the firm. The court also ordered BCCI, an operational creditor, to deposit a settlement amount of ₹158 crore in a separate escrow account, pending resolution of an appeal by US lender Glas Trust Inc.
US lender's appeal leads to insolvency process revival
The insolvency process was revived following an appeal by Glas Trust. The lender claimed that BYJU'S owed it over ₹8,000 crore and argued for priority in repayments as a financial creditor. This development came after the NCLAT had set aside an order from the National Company Law Tribunal (NCLT), initiating corporate insolvency proceedings against BYJU'S for defaulting on its dues to lenders.
BYJU'S settlement efforts and BCCI sponsorship deal
Riju Raveendran, brother of BYJU'S founder, had raised ₹158 crore for a settlement with BCCI. This was in response to a deal signed by BYJU'S with BCCI in 2019 for its branding on the Indian cricket team's jersey. The company extended its sponsorship rights with BCCI until November 2023, but later requested the cricket board to encash a ₹140 crore bank guarantee, with an extra ₹160 crore to be paid in installments.
