The Supreme Court will hear a US creditor’s appeal against an NCLAT judgment on September 17. The judgment halted insolvency proceedings against BYJU’s and approved its Rs 158.9 crore settlement with the BCCI. The court has agreed to hear another related plea on the same date, following multiple requests to expedite the hearing.
Today, On 6th September, The Supreme Court agreed to hear a plea about insolvency proceedings against ed-tech company Byju’s. This case involves the company’s financial challenges and its settlement of dues with the BCCI. Both parties are seeking an expedited hearing, and the court has stayed a previous NCLAT judgment concerning the case. The case revolves around a sponsorship agreement default with the BCCI.
Byju Raveendran filed a caveat with the Supreme Court on August 3 against US-based creditor Glas Trust Company LLC, following an NCLAT order. The NCLAT had restored Byju’s board and overturned insolvency proceedings against the edtech company. This preemptive legal move aims to ensure a fair hearing before any potential challenge by Glas Trust.
![[Byju's Insolvency Case] Resolution Professional (RP) Are Creating 'Chaos': Creditor To NCLT](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/08/image-44.png?resize=447%2C367&ssl=1)
The NCLAT Chennai expected to announce its decision on Byju Raveendran’s appeal against insolvency proceedings on August 2. This ruling will impact the disputed Rs.158 crore settlement between Raveendran and the BCCI. The case revolves around the initiation of insolvency proceedings against Byju’s parent company, and the source of funds used for the settlement is under scrutiny.
US lenders filed involuntary Chapter 11 cases against Byju’s subsidiaries Neuron Fuel Inc., Epic! Creations Inc., and Tangible Play Inc. accusing misappropriation of funds. Byju’s founder is accused of breaching debt agreements. Byju’s US lenders also sought to prevent the company from pledging, selling, or transferring its shares. Byju’s intends to contest the case.