The insolvency hearing for bankruptcy against edtech firm Byju's on has been adjourned as one of the members of the NCLT bench recused himself from the hearing.
Justice Sharad Kumar Sharma of the National Company Law Appellate Tribunal (NCLAT) recused himself from the proceedings after a petition was filed over the judge's conflict of interest overseeing the case.
The insolvency hearing for bankruptcy against edtech firm Byju's on has been adjourned as one of the members of the NCLT bench recused himself from the hearing.
Justice Sharad Kumar Sharma of the National Company Law Appellate Tribunal (NCLAT) recused himself from the proceedings after a petition was filed over the judge's conflict of interest overseeing the case.
"I have appeared as a senior counsel for the Board of Control for Cricket in India (BCCI), since they are the main beneficiaries of this order, I cannot take this up," Sharma, the judicial member of the NCLAT, said as per PTI.
"I will be refusing to hear the matter. It will go to the Chairperson and he will decide on the next date,” Justice Sharma said.
The case will now be placed before NCLAT chairperson Justice (retd) Ashok Bhushan, who will take a call on the course of action.
The development comes in the wake of the BCCI filing an insolvency procedure against the company’s parent entity, Think and Learn for bankruptcy, over a default of Rs 158.9 crore.
The company was once valued at $22 billion.
Following that the NCLT suspended the board of the edtech's parent entity, Think and Learn Pvt Ltd, as per the provisions of the IBC and appointed an interim resolution professional to oversee the company's affairs.
Raveendran had challenged the NCLT order before the appellate tribunal, NCLAT as well as the Karnataka High Court.
On July 26, the Karnataka High Court deferred Raveedran’s plea seeking to suspend the order that initiated the insolvency procedure against the company to July 30.
Senior Advocate Abhishek Manu Singhvi, who appeared for Raveendran in the High Court stated that his appeal over the recusal of one of the judges of the bench has been adjourned by the NCLAT, and that if a committee of creditors is formed during that period, they would take over the company without letting them argue their appeal.
Singhvi sought a stay on setting up of CoC till NCLAT decides Byju’s plea.