Before accepting the settlement, the tribunal took a recorded statement from Riju Raveendran where he mentioned that the money paid to BCCI would come from him personally.
The Chennai bench of the National Company Law Appellate Tribunal (NCLAT) has finally accepted the settlement between ed-tech firm Byju’s and the Board of Control for Cricket in India (BCCI). This is as per a Bar and Bench report. Following this, the insolvency proceeding against the ed-tech firm has been halted.
Before accepting the settlement, the tribunal took a recorded statement from Riju Raveendran, the brother of Byju Raveendran, where he mentioned that the money paid to BCCI would come from him personally and not from the money that would go to the financial creditors of the company.
In a statement, the tribunal reportedly said, “Riju Raveendran has given an undertaking; this money is not coming from any credit agreement. Although the applicant (a financial creditor) is not agreeing to this, the applicant has also not brought on record any evidence that this money is from the amount disbursed to Byju's Alpha Inc. or that this money is from the coffers of the corporate debtor (CD).”
Just to give some context, the BCCI had initiated an insolvency proceeding against the ed-tech firm after Byju’s failed to pay Rs 158.9 crore. Afterward, the National Company Law Tribunal (NCLT) in Bengaluru initiated bankruptcy proceedings against the company, appointing an interim resolution professional, suspending the board of directors, and freezing its assets on July 16. The company's last payment was made in September 2022, with the dispute period extending from October 2022 to March 2023.
This week, the NCLAT was informed by the BCCI that it had reached a settlement with Byju’s. However, the US lenders of the ed-tech firm raised objections to it, saying that it was a 'tainted settlement.' The lender questions how the ed-tech firm could raise money to pay the council when it could not pay salaries.
Appearing for a financial creditor, senior advocate Mukul Rohatgi reportedly said, “As I have said, the maths don't match. We are forgetting that 10,000 crore was given to them. They say the remaining amount will be paid from the sale of assets. Which assets? Salaries have not been paid. From where is he getting this money?”
Byju’s has meanwhile criticized its US-based Glas Trust for approaching a US court and raising objections about the Byju’s-BCCI case. Speaking on behalf of Byju’s, Senior Advocate Arun Kathpalia reportedly said, “Look at what is going on. What is transpiring in your Lordships court is becoming the subject matter in a US lis. Unacceptable, my lords.”