The Supreme Court on Thursday (September 26, 2024) reserved its judgment on an appeal filed by of U.S.-based creditor Glas Trust Company LLC against a judgment of the National Company Law Appellate Tribunal (NCLAT) allowing the ed-tech firm Byju’s to pay a settlement amount of ₹158 crore to the Board of Control for Cricket in India (BCCI).
A three-judge Bench headed by the Chief Justice of India directed the Insolvency Resolution Professional (IRP) to maintain status quo in the meanwhile and not hold any meeting of the Committee of Creditors (CoC) until the pronouncement of the judgment by the apex court in the appeal.
The interim order followed a submission by senior advocate Kapil Sibal, appearing for Glas Trust, that the IRP had scheduled a CoC meeting at 4 p.m. on September 26.
During back-to-back hearing in the case, the apex court had questioned whether the BCCI could be allowed to strike a “personal agreement” with Byju’s promoter and “walk away” with its money.
The U.S. lender had said, as a major financial creditor, it should have got priority in repayments.
“How can a private agreement be struck like that with just one creditor?” Chief Justice Chandrachud had asked BCCI on September 25.
Also read: How India’s Byju’s went from startup star to facing insolvency
Solicitor General Tushar Mehta, appearing for BCCI, had submitted that the ₹ 158 crore was offered by Riju Raveendran, Byju’s brother, from his personal assets. The money was not tainted.
Senior advocate Gopal Sankaranarayanan, appearing for an intervenor, urged the Bench to direct the Rs. 158 crore deposited in an escrow account by BCCI to be forwarded to the IRP for the interregnum.
Senior advocate A.M. Singhvi accused Glas Trust, also represented by senior advocates Shyam Divan, of attempting to “grossly prejudice” Byju’s in the eyes of the Supreme Court.
The NCLAT, on August 2, granted relief to the embattled ed-tech firm by setting aside the insolvency proceedings against it after approving its ₹158.9 crore dues settlement with the Board of Control for Cricket in India (BCCI). The Supreme court had stayed the operation of the NCLAT decision in an order on August 14.
Byju’s had entered into a Team Sponsor Agreement with the BCCI in 2019. Under the agreement, the ed-tech firm got exclusive rights to display its brand on the Indian cricket team’s kit and some other benefits.
Published - September 26, 2024 01:51 pm IST
