![[BREAKING] Supreme Court Nullifies Rs 158 Crore Byju's-BCCI Settlement To Conclude CIRP Proceedings](https://i0.wp.com/lawchakra.in/wp-content/uploads/2024/09/image-430.png?resize=447%2C367&ssl=1)
The Supreme Court Today (Sept 25) expressed doubts over whether the National Company Law Appellate Tribunal (NCLAT) had applied its mind while deciding to close insolvency proceedings against ed-tech firm Byju’s. The Court indicated that it is inclined to send the matter back to the NCLAT to take a fresh decision.
The Supreme Court has allowed the DAIT-Adani Power consortium to temporarily operate Coastal Energen’s power plant until the NCLAT issues its final order. This decision provides interim relief amid the ongoing insolvency dispute, overturning the NCLAT’s interim order and expressing concerns about the haste with which the NCLAT had acted.
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.
NCLAT Chennai today has approved Byju’s settlement with BCCI, halting insolvency proceedings against the edtech firm. Repayment source was confirmed, safeguarding financial creditors’ interests. The tribunal criticized unnecessary complexity and stressed the importance of settlement. With this decision, insolvency proceedings against Think and Learn will cease, and the firm will not form a Company of Creditors.
![[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.
Today(on 31st July), The BCCI has resolved its cricket jersey sponsorship dispute with Byju’s, with Byju’s agreeing to repay over Rs.158 crores to the BCCI. However, a US-based financial creditor opposes the settlement, alleging illicit funds. The NCLAT is examining the situation. Byju’s insolvency proceedings are also ongoing, with various legal actions at different courts.
The Supreme Court has raised concerns about using NCLT orders from its website as certified copies for appeals at NCLAT. This has led to a notice being issued, and the Insolvency and Bankruptcy Board of India (IBBI) has been asked to review the process. The involvement of Senior Advocate Ritin Rai’s team adds weight to the appellants’ case.