BCCI Seeks Urgent Hearing to Withdraw Insolvency Case Against Byju’s Ahead of November 18 Hearing

The BCCI has requested an urgent hearing to withdraw its insolvency case against Byju’s following a Supreme Court ruling that reinstated the proceedings. The court had annulled a previous settlement and ordered the BCCI to deposit ₹158 crore with the Committee of Creditors. The National Company Law Tribunal (NCLT) is set to hear the case on November 18.

CONTENTS:

• BCCI withdraws insolvency proceedings against Byju’s.
• Creditors seek removal of insolvency professional.
• BCCI seeks urgent hearing in insolvency.

BCCI Seeks Urgent Hearing to Withdraw Insolvency Case Against Byju’s Ahead of November 18 Hearing

BCCI withdraws insolvency proceedings against Byju’s

BCCI Seeks Urgent Hearing to Withdraw Insolvency Case The Board of Control for Cricket in India (BCCI) has decided to withdraw its insolvency proceedings against Byju’s at the National Company Law Tribunal (NCLT). This decision follows a Supreme Court ruling in October that overturned the National Company Law Appellate Tribunal’s (NCLAT) decision to quash the insolvency proceedings against the edtech company. The Supreme Court had instructed the involved parties to approach the NCLT once again. The NCLT is scheduled to hear BCCI’s request on November 18.

Currently, the NCLT is also considering an application from Byju’s US lenders to remove the insolvency resolution professional (IRP) and appoint a new committee of creditors (CoC). On October 23, the Supreme Court, led by Chief Justice D.Y. Chandrachud, nullified the NCLAT’s approval of Byju’s ₹158.9 crore settlement with the BCCI, directing the board to deposit the settlement amount with the CoC. The decision followed an appeal by the US-based Glas Trust Company LLC, a creditor of Byju’s.

The Supreme Court criticized the NCLAT for not thoroughly considering the case before dismissing the insolvency proceedings and deemed its verdict as “unconscionable.” The court also suspended the NCLAT’s order and issued notices to Byju’s and others involved, following the appeal by Glas Trust regarding concerns over the source of funds for the settlement.

Creditors seek removal of insolvency professional

BCCI Seeks Urgent Hearing to Withdraw Insolvency Case Amid increasing scrutiny over the insolvency resolution process of BYJU’S, the company’s US-based lenders, including Glas Trust, along with other creditors, have called for the removal of Pankaj Srivastava as the insolvency resolution professional (RP). During proceedings at the Bengaluru bench of the National Company Law Tribunal (NCLT), Glas Trust’s counsel, Uday Holla, argued that Srivastava’s actions had led to confusion and disorder, pointing to inconsistencies in his classification of creditors and decisions about financial creditors. The request for removal was supported by Aditya Birla Finance, another creditor, who noted that only one party had been accepted as a financial creditor.

The NCLT is expected to hear the matter again on November 18. The Board of Control for Cricket in India (BCCI), which is also involved in the proceedings, has sought to halt the insolvency case. This request follows a Supreme Court ruling in October that reinstated the insolvency process and ordered the BCCI to deposit a ₹158 crore settlement with creditors.

The situation was further complicated by a recent Karnataka High Court ruling, which temporarily barred the committee of creditors (CoC) from making decisions regarding BYJU’S affairs until the NCLT resolves the dispute over the RP’s removal. Glas Trust had previously approached the Supreme Court, challenging Srivastava’s role and the disqualification of the consortium from the CoC.

BCCI seeks urgent hearing in insolvency

BCCI Seeks Urgent Hearing to Withdraw Insolvency Case The Board of Control for Cricket in India (BCCI) has requested an urgent hearing to withdraw its insolvency case against Byju’s. This move follows the Supreme Court’s decision to annul a previous settlement between the parties and instruct them to approach the National Company Law Tribunal (NCLT) again. BCCI’s counsel urged the NCLT in Bengaluru to prioritize the withdrawal request, arguing that granting it would make other pending motions, such as those by creditors Glas Trust and Aditya Birla Finance (ABF) seeking the removal of the current resolution professional (RP), irrelevant.

The NCLT is scheduled to hear the case on November 18. The Supreme Court had reinstated Byju’s insolvency proceedings on October 23, following an appeal from Glas Trust, which had challenged the National Company Law Appellate Tribunal’s (NCLAT) earlier ruling halting the insolvency process against Byju’s parent company, Think & Learn Pvt. Ltd. The court also ordered BCCI to deposit ₹158 crore into an escrow account controlled by the Committee of Creditors (CoC), reinforcing its earlier instruction for the RP to maintain the status quo.

The court criticized the NCLAT for approving the settlement without involving the NCLT, which has primary jurisdiction in such matters. This ruling shifted control of Byju’s from its founder, Byju Raveendran, to the company’s creditors. On October 30, the Karnataka High Court prevented the CoC from making any decisions until the NCLT addressed the applications for the RP’s removal.

Glas Trust has also raised concerns about the sources of funds for the settlement, alleging that money raised by Riju Raveendran, Byju’s founder’s brother, was “tainted” and should have been allocated to financial creditors. The Trust, along with ABF, has also filed a lawsuit alleging misconduct by Byju’s RP, Pankaj Srivastava, in the insolvency process.

The BCCI’s insolvency petition stems from Byju’s failure to meet obligations under a sponsorship deal, including a ₹140 crore bank guarantee, leading the cricket board to seek insolvency proceedings. Byju’s is under significant financial pressure, facing a $1.2 billion loan repayment and scrutiny from investors demanding asset disclosures.